Soybean flat in Indore on weak demand, low arrivals

Soybean prices in Indore remained largely flat due to subdued demand from crushing units amid declining arrivals.

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 40,000 bags (1 bag = 100 kg) compared with 45,000 bags.

Tracking cues from spot markets, soybean futures on NCDEX, too, were largely steady. The June soybean contract was flat at 3,717 rupees per 100 kg.

Soybean futures closed with most nearby contracts 5 to 6 3/4 cents lower. Front month May was 4 1/4 cents away from the Dec 2008 low this morning on the continuous contract.

Nearby soy meal was down a dime/ton, with soybean oil 15 points lower. May futures expire on Tuesday. Trade tensions are rising, as China plans to raise tariffs on $60 billion of US goods to counter the US hike from last week.

This afternoon’s Crop Progress report showed soybean planting at 9% complete as of May 12, shy of the 14-15% range of estimates. Last year was pegged at 32%, with the 5 year average at 29% for that date.

USDA showed 513,375 MT of soybeans inspected for export during the week of May 9, with 272,061 MT headed to China.

Shipments were down 14.87% from last year and 26.55% below the same week last year.