Soybean flat in Indore on low arrivals, weak demand

Prices of soybean remained flat in Indore due to subdued demand from crushing units amid declining arrivals.

Spot prices are unlikely to move sharply in coming days before the new sowing season starts in June.

In Indore, the oilseed was sold at 3,840-3,850 rupees per 100 kg, largely unchanged. Arrivals in Madhya Pradesh, the largest grower, were pegged at 38,000 bags (1 bag = 100 kg) compared with 42,000 bags.

Tracking spot markets, soybean futures on NCDEX too were largely steady. The June soybean contract was 0.2% down at 3,725 rupees per 100 kg.

Soybean futures posted sharp 26 to 29 cent gains in most contracts on Tuesday. Specs were working to cover their record net short position, after USDA showed slower than expected planting.

July soy meal was up $10.70/ton, with soybean oil 39 points higher. May futures expired today. Monday afternoon’s Crop Progress report showed that NC was the only state reported at faster than normal pace as of 5/12, with SD still yet to get seed in the ground.

MN and IL are 3% planted, well behind normal, with OH and IN at 2%. IA is 13% seeded, with NE at 20% complete. USDA reported a private export sale of 180,000 MT of soybeans to unknown destinations for 18/19 this morning.

NOPA is expected by traders to show April member crush of 161.607 mbu, which would be slightly higher than last year. Soybean oil stocks are seen at 1.779 billion pounds.

IEG Vantage, formerly Informa, puts the US soybean acreage at 86.4 million acres, up 1.8 million acres from USDA March Intentions.