The June soybean contract on NCDEX hit a near two-week low of 3,680 rupees per 100 kg as the India Meteorological Department has stuck to its forecast of normal rainfall in the country this year.
Rains are likely at 96% of the long-period average this year, the weather body reiterated in an interview to Cogencis.
In Indore, soybean prices eased due to a decline in demand from crushing plants. The oilseed was sold at 3,880 rupees per 100 kg, down 10-15 rupees.
IMD’s comments are likely to lead to a further decline in soybean futures on the domestic bourse in the coming days.
Soybean futures ended 16 to 17 cents higher in the nearby contracts. Specs covering their record net short position on planting delays was supportive.
July soy meal was up $8.40/ton, with soybean oil 5 points higher. Analysts expect old crop soybean sales for the week that ended on May 23 at 250,000-450,000 MT, with new crop at 0-200,000 MT.
Chinese September soybean futures traded at the highest level since November on Wednesday before pulling back on Thursday. A Bloomberg report indicates that China has put buying of US beans on hold, which is nothing new as the market shrugged off the “news”.
The sources also said there was no plans to cancel the current unshipped sales (@ 7.004 MMT).