Soybean prices in key spot markets rose on expectation of a rise in export demand

Soybean prices in key spot markets rose on expectation of a rise in export demand for soymeal from Iran. During Apr-Dec, Iran bought around 300,000 tn of soymeal from India, compared with 23,000 tn in the year-ago period. In Indore, the oilseed was sold for 3,410-3,430 rupees per 100 kg, up 10-15 rupees. arrivals in Madhya Pradesh, the largest producer, pegged at 185,000-190,000 bags (1 bag = 100 kg) compared with 200,000 bags the previous day. NCDEX on Wednesday marked 1,710 tn soybean and 960 tn mustard seed for staggered delivery in the January contracts, which will expire soon.

The February soybean contract on the National Commodity and Derivatives Exchange shot up to a nine-month high of 3,760 rupees per 100 kg, up 2.5% from previous day, due to expectations of a rise in demand for soymeal from Iran. Futures contracts of crude palm oil on the Multi Commodity Exchange rose tracking palm oil contracts on Bursa Malaysia Derivatives, which ended higher due to upbeat exports from the southeast Asian country. Soyoil futures on NCDEX, too, rose in line with those of crude palm oil. Prices of soyoil and crude palm oil typically move in tandem because they are used as substitutes for each other. Gains in soyoil contracts, however, were limited as India’s crude soyoil imports rose 8% on year to 85,404 tn in December. tracking gains in soybean contracts on the domestic exchange. Prices in spot markets, however, fell due to higher supply of the oilseed. In Jaipur, the oilseed was sold for 4,070-4,075 rupees per 100 kg, down 10-15 rupees from previous day.

China’s soybean imports in the opening weeks of 2019 have plunged from recent years, raising concerns for American farmers who were hoping that a trade deal would offer swift relief. Soybean shipments offloaded in China this year are down about 37 percent from the first two weeks of 2018. To be sure, a couple weeks of data represent a small sample size, but the drop is very concerning in light of market conditions and trade tensions.