SEA: Soybean price up at 42,500 rupee/tn from 42,000 rupee/tn

The January soybean contract closed 0.1% lower at on the NCDEX. Weakness in the key soybean contract on Chicago Board of Trade also weighed on soybean prices on the NCDEX.

However, demand for soymeal from livestock sectors and lower crop availability in spot markets will keep prices supported in the coming days.

Soybean arrivals in Indore have decreased to 1,500 bags (1 bag = 100 kg) a day from nearly 5,000 bags a month ago to due to smaller crop this year. Soybean output is seen 18% lower on year at 9 mln tn this year.

In Indore, the key market, soybean was sold at 4,280 rupees per 100 kg, up 30 rupees.

Similarly, the most-active January refined soyoil contract on the NCDEX also traded lower today due to profit booking.

Nearby soybean futures finished the Wednesday session with 1/4 to 1/2 cent drops. Meal futures were higher, up by 60 cents/ton at the close. Soybean oil futures closed down by 39 points.

A biodiesel tax credit was included in the House spending bill. The program will extend a 2017’s $1/ gallon subsidy through 2022 and be retroactive through 2018 if it survives the conferencing process.

Trade estimates for the weekly USDA Export Sales Report tomorrow range from 950k MT to 1.4 MMT of soybeans, and 150k to 350k MT of meal through 12/12.

Traders are expecting the soybean oil export sales to run 5k to 25k MT. The national average soybean basis from CmdtyView is at -0.5159 this morning, the December basis has averaged -0.5526 this year. December ’18 soybean basis stayed below -0.80 and the 18th was -0.8333.