National Commodity Exchange of India will impose additional margin of 2% on both long and short sides on all contracts of soybean in a phased manner.
Additional margin of 2% will be applicable on both long and short side in all the running contracts of soybean expiring from January 2020 onwards and in contracts to be launched.
Additional margin of 1% will be applicable from Dec 26 and another 1% will be applicable from Dec 31.
The move came in the wake of a sharp rise in soybean prices on the bourse.
The January futures contract of soybean had hit four-year-and-six month high of 4,380 rupees per 100 kg, due to shrinking supply in spot markets and concerns over production this year. Arrivals were down because of lower-than-estimated crop this year.
The nearby soybeans gained 1/2 to 3 3/4 cents with the gains not as significant in the later maturing contracts. Friday’s action helped to push futures to a 2.23% gain on the week.
Meal futures closed in the red, down by $0.50/ ton but still made a weekly gain of 90 cents/ton. Soybean oil futures gained 3.83% on the week and finished Friday UNCH. In the latest release of the Commitment of Trader’s report, managed money spec funds were net short in soybeans,
However, the spec traders were 29.6% less short than last week. Spec position for soybean meal futures was net short as of 12/17, and bean oil traders were net long by 103,340 contracts, a 33.05% strengthening of last week’s position.
Malaysian Palm Oil exports were shown at 873,873 MT from Dec 1-20, which is 16.37% behind the first 20 days of Nov, the mo/mo reduction could be in part due to prices rallying. Weekly Malaysian palm oil prices have risen 824 ringgits (39.75%) since the week ending Oct. 18th.