The January soybean contract on NCDEX hit a fresh six-month high of 3,568 rupees per 100 kg due to strong demand from soymeal exporters and crushing plants. At 1330 IST, the contract was at 3,552 rupees per 100 kg, up 0.7% from the previous close. During December, soymeal exports rose 42% on year to 240,530 ton. In Indore, a key spot market, soybean was sold for 3,400-3,425 rupees per 100 kg, up 10-15 rupees from previous day. Prices were higher despite a surge in arrivals. In Madhya Pradesh, the top producer, supply was pegged at 100,000-110,000 bags (1 bag = 100 kg), compared with 75,000-80,000 bags the previous day.
Currently, guar seed and soybean carry 19% weightage each, followed by chana with 17%, castor seed at 13%, and mustard seed at 12%. Cottonseed oilcake, coriander, jeera, turmeric, and barley are other components of the index.
Gains in key soybean contracts on Chicago Board of Trade also propped up prices on NCDEX. Soybean rose on CBOT because of expectations that ongoing talks between the US and China to iron out their trade issues would bear fruit. The US is the world’s top producer of soybean and China the largest importer. Futures contracts of refined soyoil on NCDEX rose around 0.7%. Crude palm oil on the Multi Commodity Exchange of India traded 0.6% higher due to depreciation in the rupee against the US dollar, and tracking strength in global markets.