Prices of soybean in the benchmark market of Indore rose due to firm demand from stockists. Stockists are building inventory because of a likely fall in output this season due to concerns of crop damage in parts of Madhya Pradesh on the back of heavy rains.
In Indore, soybean was sold at 4,000 rupees per 100 kg, 10 rupees higher. Arrivals, however, were unchanged at 5,000 bags (1 bag = 100 kg). However, futures contracts of soybean on NCDEX were lower as new crop arrivals have increased manifold in the last few weeks.
The December delivery contract on NCDEX was 1% lower at 3,975 rupees per 100 kg.
Soybean futures dropped double digits out of the weekend, falling by 12 3/4 to 14 1/2 cents on Veterans Day.
Bean oil stayed 8 points lower on Monday. Trade ideas for US harvest progress are in the 84-85% range for Tuesday’s weekly report.
The Black Sea UkrAgroConsult, projects the Russian 2019/20 soybean production to be 4.3 MMT, and revised the Ukraine 100,000 MT higher to 3.7 MMT. EU imports of soybean meal are up 15% over last MY.
The soybean meal is typically shipped to Spain to be converted into livestock feed; 45% hog feed, 31% poultry and 24% beef. US ending stocks from the WASDE were projected at 475 bbu. World bean carryout was bumped up to 95.42 MMT.