Soybean futures fall on weak spot demand

Soybean prices fell by Rs 40, to Rs 3,626 per quintal in futures trade Thursday after participants cut down their bets tracking negative cues from the physical market.
Besides, muted demand for soybean attributed the fall in prices, marketmen said.

Soybean for August contracts fell by Rs 40, or 1.09 per cent, to Rs 3,626 per quintal clocking an open interest of 39,500 lots.

On the National Commodity and Derivatives Exchange, soybean for September contracts eased by Rs 6, or 0.16 per cent, to Rs 3,666 per quintal having an open interest of 8,380 lots.

The price of soybeans for August shipment into North China edged marginally higher as CBOT soybean futures rallied on Wednesday, while premiums were static on the day due to a stronger Brazilian real and higher truck rates.

Brazilian premiums on CFR basis were maintained at a stable level despite the CBOT soybean futures contract rallying 10 c/bu across the board by Wednesday’s close.

At the same time, farmers in Brazil delayed soybean sales on the back of a stronger real against the dollar, while truck rates surged due to the fast pace of this year’s corn harvest.

The APM-6 China CFR premium was assessed at 180 c/bu over August futures, equating to $392.75/mt, up $1.50/mt from the previous assessment.