Soybean prices on Wednesday went up by Rs 18 to Rs 3,842 per quintal in futures market as traders created fresh positions tracking positive spot demand. On the National Commodity and Derivatives Exchange, soybean for June delivery rose by Rs 18, or 0.47 per cent, to Rs 3,842 per quintal with an open interest of 34,660 lots.
Soybean for July delivery went up by Rs 6, or 0.16 per cent, to Rs 3,762 per quintal with an open interest of 56,860 lots. Marketmen said raising of fresh positions by speculators on the back of higher demand mainly led to rise in soybean prices.
Tuesday trading took more of last week’s gains by adding to Monday’s losses. The front month futures closed 1 1/2 to 1 3/4 cents lower on Tuesday. The deferred contracts were down even more, as 2021 expiry months closed 2 to 3 3/4 cents lower. Soymeal futures were down $1.30/ton on the day with July closing at $287.10/ton.
Soybean oil futures were higher at the closing bell, with gains limited to 13 points in the front months. New crop soybeans were 86% planted and 67% emerged as of June 07. IA beans were shown 97% planted, 10 ppts ahead of their 5-yr average. Traders anticipate USDA to increase their forecast for new crop beans. The average trade guess is for 4.138 bbu produced on a 49.9 bpa yield. If realized that would be 13 mbu and 0.1 bpa above the May forecast.
CONAB reduced their soybean production estimate for Brazil by 95k MT, to 120.424 MMT. USDA’s number will come out on Thursday, with traders expecting the report to show 123 MMT (down 1 from May). For Argentina soybeans, traders anticipate a 300k MT cut to 50.7 MMT. According to trade sources, a Chinese state buyer purchased at least 120,00 MT of soybeans from the PNW on Tuesday.