Soybean

Soybean prices in Madhya Pradesh benchmark market of Indore fell on anticipation of higher yields of the upcoming kharif crop. Good rains in Madhya Pradesh during the past few days, which help in better yields. Traders are not buying right now, as they expect prices to fall further in coming days.

Olam Agro India Pvt Ltd took delivery of 4,530 tonne soybean on the National Commodity and Derivatives Exchange in the August contract. Olam Agro also took delivery of 3,690 tonne of the same-month contract of mustard, while the largest delivery was made by Cargill India Pvt Ltd at 1,000 tonne.

Soybean prices in Indore fell because of weak demand from millers and in anticipation of a good crop this season. Demand for soybean from millers is very low right now, as prices of soyoil rose in the past few days. Millers will go under losses while crushing soybean into soyoil. Anticipation of good crop this kharif season after adequate rains hit the soybean growing belt of Madhya Pradesh also pulled down prices of the oilseed.

Soybean exports from Russia totaled 26.1 KMT in July 2017 against 20.8 KMT in the previous month and 22 KMT in July 2016. Overall, 346.2 KMT of soybeans were exported in September-July 2016/17, or 22% less than at the same time last season. As before, soybean exports are hampered by strong domestic demand for soybean products. This season, Russia exported soybeans for the first time to Iran (5% of total exports) and Mongolia (0.2%).

Futures contracts of all the components of the edible oil basket, barring soybean, traded higher on domestic exchanges. Soybean futures on the National Commodity and Derivatives Exchange closed about 1% down due to improve in weather conditions in key growing areas of Madhya Pradesh and Maharashtra, the top growers. Recent rains and forecast of more showers in coming days after rounds of dry spells in major growing areas boosted hopes of recovery in yields. Higher arrivals of the oilseed in Madhya Pradesh also weighed on the sentiment.

Soybean prices in benchmark Indore market was down because of increased arrivals. Arrivals of the oilseed increased on fear of further fall in the prices. Soybean prices are declining in the last few days because of improved crop condition due to recent favorable rains in major growing areas. Futures contract of soybean on the NCDEX also traded lower following spot prices. The most-active October contract traded down 1.1% from previous close.

Defying the usual bearish trend during fresh arrival season, soybean prices may rise 10% in Oct-Nov, bolstered by pest attacks, weak rains, and projections of lower acreage. Anticipation of a smaller crop size this year due to fall in area and weather vagaries may primarily support prices. Soybean may rise by around 10% during Oct-Nov. India’s soybean output is likely to fall 5% to 9.6 million tonne in 2017-18 (Oct-Sep) as acreage is seen lower in key growing areas. We expect prices to rise by nearly 10-12% by October-end and November, as by that time, we’ll have a clearer picture of the damage to crop and fall in production.

Futures contracts of soybean fell to a one-week low on NCDEX because of increased prospects of recovery in the yields following favorable rainfall in major growing areas. The crop is previously under threat due to deficient rains in Madhya Pradesh and Maharashtra. Spot prices of soybean in the benchmark market of Indore, Madhya Pradesh, also fell.

Futures contracts of crude palm oil on the Bursa Malaysia Derivatives traded up tracking gains in the soy oil contracts on the CBOT. Prices of soy oil and crude palm oil move in tandem as both are used in production of bio-fuels. A weak Malaysian ringgit against the dollar further supported gains in prices. A weak ringgit makes the commodity attractive for foreign buyers. Investors now await Malaysian crude palm oil export data for August for further cues.

Futures contracts of soybean fell over 1% due to adequate rains in the key growing areas of the commodity. The most-active October contract on NCDEX traded down 1.7% from previous close. Adequate rainfall on Sunday in the key growing areas of Madhya Pradesh, Maharashtra and Rajasthan is likely to benefit the soybean crop. Weakness in the soybean contract on CBOT also weighed on domestic futures.

Despite the government efforts to reduce India dependence on imported edible oil by increasing local oilseed production, soybean output is likely to decline by 17 per cent this kharif harvesting season. The decline is attributed to lower sowing area and reports of crop damage following a long dry spell in the peak planting season. Sowing of soybean crop is almost complete by mid-August, with little chance of further addition of kharif acreage. Apart from that, there was a long dry spell this monsoon season. Experts believe the standing crop got damaged due to deficiency of moisture in the peak germination period.

The U.S. private exporters sold 132,000 tonnes of U.S. soybeans to China for delivery in the 2017/18 marketing year that begins Sept. 1, 2017. Private exporters sold 105,500 tonnes of U.S. soymeal to Thailand for delivery in the 2017/18 marketing year that begins Oct. 1, 2017.

Extending its rising streak for the second day, refined soya oil prices strengthened by another 0.49 per cent in futures trading as speculators engaged in building up positions, driven by rising demand in the spot market. Expanding of positions by traders on the back of rising demand in the spot market against restricted supplies from producing belts mainly kept refined soya oil prices in positive terrain at futures trade.

MP Farmers say when the insurance company come from the surveyor not getting the information. Hundreds of farmers from dozens of villages reached the collectorate with the crop of affected soybean. But the collector said stop now. Let it be a little more time Because one person cannot be surveyed. Now you have come again and farmers come. After some time, the situation become clear. After this, the survey done together, the damage done by assessing the loss, but the farmers said that the crop has worn out, which is to plow the farm. Then how the loss be assessed. After this, the collector assured them to get the sum insured in the light loss.

Futures contracts in the edible oil basket traded mixed, with soybean and mustard ending lower and crude palm oil and refined soyoil traded higher on domestic exchanges. Their prices had risen in the past three previous sessions on reports of weak area under the kharif crop this year. Soybean and mustard futures on National Commodity and Derivatives Exchange ended lower due to tepid buying at higher price level.

The futures contracts of soybean on the CBOT traded nearly 1% higher mainly due to anticipation of poor weather in the US lowering yield of the oilseed. The most active November contract of soybean on the CBOT was at $9.44 per bushel, up 0.7% from the previous close. Crushing of US soybean will rise with a hike in import duty on bio-diesel, as soyoil–a derivative of soybean–is used in manufacturing of bio-diesel. Contracts gained also due to stronger-than-expected weekly US soybean export data.

Prices of soybean were up in the key wholesale market of Indore, Madhya Pradesh, due to lower supply of soyoil amid good demand. Arrivals of soybean were steady. Refined soyoil in Indore was sold up 2-3 rupees from previous close. There is good demand for the seed from oil millers due to higher landed cost of imported crude degummed soyoil as compared to domestic market. Concerns over lower rainfall in key soybean growing areas of Madhya Pradesh and lower output also led to a rise in prices. The most active October futures contract was up 0.3%.

Soybean area in the country is likely to fall 6.4% on year to 10.3 million ha as farmers shifted to other crops lured by better realisations, citing results of their first crop survey of the 2017-18 (Jul-Jun) sowing season. Overall area in Madhya Pradesh (largest soybean grower) has decreased by 11% and the shift is to other crops like urad, moong, and maize. About 13.5% of the standing soybean crop in the country is in very poor condition, 57% is in fair condition, 17.4% of the crop is in good condition and the rest of the 12% is in very good condition. Some crop in Khandwa, Khargone and Barwani districts of Madhya Pradesh have suffered moisture stress because of lack of rains in the last 20-25 days and as a result yields may suffer. In line with Madhya Pradesh, area under soybean has also declined in Rajasthan. Soybean acreage this year in the state is seen at 920,000 ha, down from 980,000 ha a year ago.

Soybean futures on National Commodity and Derivatives Exchange ended 1.7% higher, anticipating weak output this year after a fall in acreage and poor crop condition in the country.

Futures contracts in the edible oil basket traded higher on domestic exchanges. Soybean futures on NCDEX ended up, bolstered by a decline in acreage under the crop in the country. Soybean fell on the US exchange due to forecast of beneficial rains in the US. Dry weather conditions earlier posed threat to the standing soybean crop in the country, and rains may boost yield. Soyoil prices rose due to the ongoing strike at ports in Argentina.