News

Prices of soybean in Indore, Madhya Pradesh fell as demand from domestic oil millers. A rise in arrivals also put pressure on soybean prices. Supplies have increased because farmers have offloaded more to avail better prices.

The most active February contract traded at 3,743 rupees per 100 kg, down 1.8% from the previous close, after hitting the 3% lower circuit. A 20,070-tn fall in open interest of February contract to 202,500 tn indicated profit booking. The contract hit the high on reports Madhya Pradesh revised its production view downward.

Argentinian production of soybean is to hit a five-year low of 52 million mt in the 2017/18 crop year, as yields are expected to fall to 13% to 2.9 tonnes per hectare. A lack of rainfall over the past two months has been the main reason for the yield write-down, which will see production fall 9% below the previous crop year and 8% on the previous five-year average. The board expects the planting area to be 18.5 million hectares, although that figure is down on the 18.8 million hectares that were expected to be planted due to a lack of rain. The damaging effect of the moisture deficit is not limited to the smaller area planted, but the emergence of seedlings in these conditions have already forced us to discount potential yields in the new campaign.