India Edible Oil:Gains; soybean settles 1.6% higher on lag in sowing

Futures contracts of all components of the edible oil basket on the domestic exchanges edged higher. Soybean contract on National Commodity & Derivatives Exchange closed 1.6% higher because of a lag in sowing in major growing regions.

Area under soybean, the most-grown kharif oilseed, was down 19% on year at 5.2 mln ha so far, the farm ministry data showed. Weakness in key soybean contracts on Chicago Board of Trade limited a sharp rise in the NCDEX contract. The US-China trade war has weighed on the sentiments on the Chicago bourse. US is the top soybean and China is the largest buyer.

Soybean futures posted 10 to 14 1/4 cent gains in most contracts, with August up 4.25% this week. Expiring July soybean meal was up $1.70/ton, with soy oil 4 points higher. Prior to Monday’s NOPA report, analysts expect NOPA to show 154.405 mbu of soybeans crushed by its members in June.

Soy oil stocks are seen at 1.527 billion lbs. CFTC data showed spec funds in soybean futures and options adding 4,984 contracts to their net short position, at -41,934 contracts as of Tuesday.

USDA raised the average cash soybean price for 19/20 by another 15 cents to $8.40 on Thursday. Chinese imports of soybeans from all destinations during June totaled 6.51 MMT, that was an 11.5% drop from May and 25% lower than the same month last year.