Soybean futures climbed to a 30-month high in January supported by increasing demand from the domestic oil mills amid higher meal exports coupled with good domestic demand for edible oil in the country.
Soybeans futures on NCDEX crossed Rs 3,900 per 100 kg but corrected due to profit booking to close at 3,838 levels. It is a fourth consecutive monthly gain in the price for soybean despite 30 percent higher output on year during the 2018-19 season.
Soybean futures managed to squeeze out 1 to 1 1/2 cent gains in most contracts on Friday. Meal futures were up 60 cents/ton in the nearby contracts, with soy oil 6 points higher.
The NASS Crop Production report showed US soybean yield at 51.6 bpa, down 0.5 bpa from the November update and below most estimates. That dropped production to 4.544 bbu.
The new ending stocks projection from USDA is now at 910 mbu, 45 mbu below the previous number. In the quarterly Grain Stocks report, USDA showed Dec 1 soybean stocks at 3.736 bbu, a jump of 575 mbu from the year prior.
In the world side of things, USDA saw tighter world carryout by ~8.61 MMT to 106.72 MMT.
That was assisted by a 5 MMT cut to Brazil production as expected, now at 117 MMT. Argentina’s output number was down 0.5 to 55 MMT.
Chinese soybean consumption was cut 3.5 MMT from the December figure, with imports lowered another 2 MMT.