Soybean prices on National Commodity and Derivatives Exchange are seen rising in April owing to firm oilmeal demand from poultry feed sector and exporters. April soybean contract on the NCDEX was at 3,769 rupees per 100 kg, up 2.4% from the previous close. Likely gains on Chicago Board of Trade may further push up soybean prices on the domestic exchange.
CBOT prices are expected to trade higher on technical buying and expectations of good demand. However, good progress of US soybean crop due to favorable weather in growing regions may cap sharp upside. Movement in the dollar index will also provide direction to soybean prices. The rupee has appreciated around 2% and hit a high of 68.34 in March. The currency settled at 69.34 at the end of the month. The country’s production in 2018-19 (Jul-Jun) is seen up 37.4% at 11.5 mln tn, according to Soybean Processors Association of India Soybean. This could be highest in the last five years.
Soybean futures closed 9 1/4 to 11 1/4 cents higher to start the week. Nearby meal futures were up $2.90/ton with soy oil up 21 points. USDA reported another 828,000 MT of soybeans were sold to China under the daily reporting system this morning. Those are for shipment before August 31. The weekly Export Inspections report showed 730,806 MT shipped in the week ending March 28.
That was down from last week, but up 147,220 MT larger than the same week in 2018. Brokerage house FC Stone raised their Brazilian crop production estimate to 115.7 MMT from their previous 113.0 MMT. This afternoon’s USDA Fats & Oils report showed slower than expected crush in February at 162.76 million bushels. Soy oil stocks were 2.149 billion pounds, up from 2.004 billion in January. The average of the few trade estimates had been 2.2 billion pounds. Average oil yield was the highest of the year at 11.67 #/bushel.