Futures contracts of soybean rose on the NCDEX due to bargain buying and cues from contracts on the CBOT. Over the past month, prices of the oilseed have fallen nearly 400 rupees per 100 kg on the domestic bourse.
The most active March-delivery contract of soybean was 1.5% higher at 3,712 rupees per 100 kg on the NCDEX. The rally in contracts is unlikely to sustain as to the rapidly spreading coronavirus will ultimately hit demand.
For the rest of the week, soybean futures on the NCDEX are seen at 3,630-3,850 rupees per 100 kg.
In Indore, the benchmark market, soybean was sold 50-70 rupees higher at 3,750 rupees per 100 kg, and daily arrivals were largely steady at 3,000 bags (1 bag = 100 kg).
Soybean futures rallied after midday and ended green at the close. Futures finished with 2 1/2 to 3 1/2 cent gains. The 0.5% Fed interest rate cut this morning had minimal impact on the market.
Soybean meal futures ended $2.0/ton higher in March contracts, and $1.20 higher in May futures. March soy oil futures finished plus 29 points, while May futures gained 25 points.
The national average soybean basis from cmdtyView was -0.5194 on 03/03. Safras and Mercado reported Brazilian soybean harvest to be 39.6% complete, compared to 45% last year.
USDA’s annual crush edition showed 62.574 million tons of soybeans were crushed in 2019. That equates to 2.056 bbu. In 2019 17.2 billion pounds of soybean oil was produced. At the end of January there were 2.351 billion lbs of Soybean oil stocks.