Spot soybean prices a tad up on better mill buys

Prices of soybean in Indore rose marginally due to a slight improvement in demand from millers and stockists. A decline in arrivals also supported prices.

In Indore, the oilseed was sold at 3,890 rupees per 100 kg up 10 rupees. Arrivals in Madhya Pradesh were pegged at 38,000 bags (1 bag = 100 kg), compared with 43,000 bags.

Soybean futures on NCDEX, however, were largely steady as a likely normal monsoon rains forecast for this year offset firm cues from spot markets.

The most-active June contract was steady at 3,708 rupees per 100 kg.

Futures contracts of soybean on the domestic bourse may fall in the coming days because India Meteorological Department has hinted it will stick to its previous forecast of a near-normal monsoon this year.

Soybean futures posted 15 to 16 cent gains in most contracts. Most front months were ~20 cents off the overnight highs at the close.

July soy meal was up $6.20/ton, with soybean oil 44 points higher. A new crop soy/corn ratio of 2.062:1 still incentivizes corn, that is if the producer has that opportunity.

A strike in Argentina closed many key ports in the country on Wednesday. NASS showed that IA was 32% planted, with NE 56% complete and MN 35% in the ground as of Sunday.

SD was only 6% planted by Sunday and MO 12% complete, with the ECB lagging as well with IL (14%), IN (11%) and OH (11%) all well below respective averages.