Value buying pushes soybean contracts up on NCDEX

Futures contracts of soybean on NCDEX were up for the second consecutive day because of value buying after a recent decline in prices. Over the past one month, soybean prices have fallen by nearly 400 rupees per 100 kg.

The most-active March contract was 1% lower at 3,964 rupees per 100 kg on the NCDEX.

In Indore, the benchmark market, soybean was sold slightly higher at 4,100 rupees per 100 kg, and arrivals were largely steady at 1,000-1,500 bags (1 bag = 100 kg).

Soybeans traded higher on Thursday, with moves of 3 3/4 cents/bu higher in the March contracts. March meal closed 20 cents/ton higher, while soybean oil was 31 points weaker at the Thursday close. Prior to the NOPA report released next Tuesday, traders estimate a total of 173.75 mbu of soybeans crushed by NOPA members during January.

Soybean export sales for the week ending 02/06 were on the low end of estimates, with the USDA update showing 644,848 MT in bookings. That was a wk/wk reduction of 8.4% and was 39.5% lower than the same week last year.

Soybean shipments on the same week were 611,345 MT, which was 57.8% lower wk/wk. MYTD shipments still outpace last year by 22.6% at 27.448 MMT. The report also showed soybean meal bookings of 234,197 MT which was 10.1% higher wk/wk, but were 4.3% less than sales the same week last year.

Soybean oil received 39,143 MT in export sales on the week ending 02/06. Soy oil exports for the same week were 12,809 MT which put MYTD exports at 342,869 MT. The average close for Nov 2020 futures is $9.19 1/4 so far through February, which would be below last year’s base crop insurance price of $9.54. Brazil’s soybean crop is projected to hit 126.3 MMT according to AgroConsult’s latest forecast, up 2 MMT from last month.