Soybean Prices are likely to remain bearish

Soybean Prices are likely to remain bearish due to subdued demand from crushing plants. Indore oilseed was sold at 3,820-3,825 rupees per 100 kg, down 20-25 rupees previous close.

NCDEX The April soybean contract hit an 11-week low of 3,631 rupees per 100 kg. The contract was at 3,638 rupees per 100 kg, down 0.8% from the previous close.

Soybean futures posted 9 to 10 3/4 cent gains in the front months on Friday, as May was up 1.51% this week. Meal futures were up $4.90/ton, with soy oil 14 points lower.

Spec funds added 39,895 contracts to their net short position in the week of 3/12, with the position at -90,197 contracts on that date. Year to date soybean commitments for export are now 16.4% below a year ago, catching up from previous weeks.

They are 81% of the USDA export projection, as the 5-year average is 92% and last year was 87%. NOPA’s monthly report showed 154.498 mbu of soybeans crushed in February, below the average trade estimate but still a record for the month. Member soy oil stocks were 1.752 billion pounds.

Heavy rains have slowed the Brazilian harvest in Parana, which is now behind last year’s pace and about 66% completed according to local sources.