India Edible Oil:Soybean down on supportive weather in central India

Futures contracts of most components of the edible oil basket, barring crude palm oil, ended down on the domestic exchanges. Soybean contracts closed 0.3% lower on the National Commodity and Derivatives Exchange as weather conditions for the crop improved in central India.

Favourable rains in central India, the key soybean growing region, may boost the yield and resultant crop. Weakness in key contracts on the Chicago Board of Trade also weighed on the investor sentiment.

Soybean prices fell on the US bourse due to subdued demand at higher price levels. Prices rose on the Chicago bourse on optimism that fresh round of dialogue between US and China would thaw the trade war between them. The world’s largest economies started their meeting today after three months. Taking cues from soybean, refined soyoil futures declined on NCDEX due to huge stocks in wholesale markets

Soybean futures saw 7 to 7 1/2 cent losses in the front months. August soybean meal was $3.90/ton lower, with soy oil down 12 points. US and Chinese officials met for more trade talks in Shanghai today.

Although in a tweet this morning, President Trump criticized China for lack of promised purchases of US ag goods and warned them from waiting on a trade deal until after the 2020 election.

Ahead of Thursday’s Fats & Oils report, analysts expect USDA to show June soybean crush at 159.4 mbu. Monday afternoon’s Crop Progress report showed state by state ratings show IL (-1), IA (-4), ND (-2) and OH (-3) all lower from the week prior.

Conditions in SD (+2), NE (+3) and MS (+8) were notably higher. According to cmdtyView, the national soybean cash index is $8.13 3/4, slightly lower than the same day last year. Basis was reported at -65 1/4 cents, 6 cents weaker than in 2018 on this date.