Price of soybean in Indore rose as demand from crushing units and exporters improved amid steady arrivals.
In Indore, the oilseed was sold at 3,780-3,890 rupees per 100 kg, about 40-50 rupees up from previous day, while arrivals in Madhya Pradesh, the largest grower, were pegged steady at 85,000-90,000 bags (1 bag = 100 kg).
Demand improved today on hopes of rising meal export demand, after soymeal exports during January rose sharply on year. Soymeal exports nearly doubled on year to 210,166 ton.
Soybean futures on the National Commodity and Derivatives Exchange ended higher due to a rise in soymeal exports during January. Firm spot cues due to a pickup in demand from crushing units also supported soybean futures.
Talks are good, purchases are good, but lifting the tariff that China imposed last July on soybean imports from the United States is the only way for U.S. soybean farmers to regain commercial access to the significant Chinese market.
It is heartening that the Administration is keeping soybeans in the conversation during the ongoing 90-day negotiation period with China, and again this week in the President’s State of the Union remarks. Chinese Vice Premier Liu’s commitment to buy an additional five million tons of U.S. soybeans is encouraging, but it is not the answer.
We need an agreement at the end of this 90-day period that specifically rescinds the tariff that China has imposed on U.S. soybean imports,” Stephens continued.