Soybean prices fell by Rs 61 to Rs 3,768 per quintal at futures trade on Wednesday as investors were off-loading their holdings amid weak demand.
On the National Commodity and Derivative Exchange, soybean delivery for October contract fell by Rs 61, or 1.59 per cent, to Rs 3,768 per quintal with business turnover of 21,900 open interest.
For November delivery, the contract fell Rs 43, or 1.17 per cent, to Rs 3,644 per quintal with an open interest of 69,740 lots.
According to traders, the prices of soybean fell at futures trade due to sluggish demand and sell-off by participants.
Soybeans futures closed Wednesday with 2 3/4 to 3 1/4 cent gains in the nearby contracts. Soybean meal was up $3.10/ton, with soy oil 14 points lower at the close.
China was reported to offer to buy more U.S. ag products, boosting annual soybean purchases to 30 MMT according to rumors. That would be in line with where we were pre-Trade War. No word on what they want the US to give up in return.
On average, traders expect a cut in the US soybean carryout in Thursday’s monthly report, with estimates suggesting a 144 mbu drop for 19/20 ending stocks.
The average trade estimate for World carryout is 96.46 MMT, which would be a 2.73 MMT reduction from Sep.
Weekly Export Sales data on Thursday is expected to show 1.3-1.8 MMT in soybean export sales during the week of 10/3. Soy meal is seen at 100,000-300,000 MT, with Soy oil at 5,000-35,000 MT.