NCDEX soybean rises on bargain buying; Indore steady

Futures contracts of soybean on NCDEX rose due to buying at lower prices after a recent fall in prices.

The most-active March delivery soybean contract on the NCDEX was 0.5% higher at 3,890 rupees per 100 kg. Weakness in global soybean prices, however, capped the upside in the prices.

In Indore, the benchmark market, soybean prices were largely steady at 3,950-4,000 rupees per 100 kg. Arrivals were a little higher at 2,000-2,500 bags (1 bag = 100 kg).

Front month bean futures fell sharply to start the new week, closing with losses of 15 to 16 1/2 cents at midday. Soybean meal futures closed with losses also, finishing Monday’s trading $3.00/ton lower.

Soybean oil closed with 112-point losses. The weak Real and large Brazilian production are an issue, but demand concerns due to the coronavirus are the main driver. The USDA announced a private sale of 163,290 MT of soybeans to Mexico for a 19/20 MY delivery.

The Export Inspections report this morning showed that 594,536 MT of soybeans were exported for the week ending 02/20. That was a 40.85% reduction wk/wk and was 54.56% lower than the same week last year. MYTD soybean shipments were 1,061 mbu, which is 58.15% of the USDA’s projected MY soybean exports.

Accumulated shipments sit 14.98% above last year’s pace, with WASDE projecting a 4.41% yr/yr growth. Through Friday, Brazil was 34.2% harvested for soybeans, compared to 46.3% at this time last year.

The February average for November soybeans to date is $9.19, with 4 days remaining in the calculation period.