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Madhya Pradesh has lowered its estimate for soybean production in 2017-18 (Jul-Jun) to 5.3 mln tn from 6.9 mln tn projected in the first advanced estimate. A downward revision in soybean production was mainly due to a dry spell during the growth stage that adversely affected the yield.

Prices of soybean in Indore, Madhya Pradesh, hit an 18-month high due to a fall in arrivals while demand from oil millers improved. A downward revision of estimate of soybean production in Madhya Pradesh in 2017-18 (Jul-Jun) at 5.3 mln tn, against 6.9 mln tn in the first advance estimate is seen supporting prices of the oilseed.

Soybean contracts on the NCDEX hit the 3% upper limit as Madhya Pradesh, India’s largest producer, revised its production view downward. The most active February soybean contract on NCDEX traded up 2.9% from the previous close.

U.S. soybean growers are losing market share in the all-important China market because the race to grow higher-yielding crops has robbed their most prized nutrient: protein. Declining protein levels make soybeans less valuable to the $400 billion industry that produces feed for cattle, pigs, chickens and fish. And the problem is a key factor driving soybean buyers from the U.S. to Brazil, where warmer weather helps offset the impact of higher crop yields on protein levels. A decade ago, the United States supplied 38 percent of soybeans to China, the world’s top importer, compared to 34 percent from Brazil. Now, Brazil supplies 57 percent of Chinese imports compared to 31 from the United States.

Madhya Pradesh has lowered its estimate for soybean production in 2017-18 (Jul-Jun) to 5.3 mln tn from 6.9 mln tn projected in the first advanced estimate. A downward revision in soybean production was mainly due to a dry spell during the growth stage that adversely affected the yield. Soybean yield declined substantially to 1,062 kg per ha compared with 1,231 kg in 2016-17.

Soybean futures on NCDEX hit 3% upper limit due to firm demand for the oilseed from millers and stagnant arrivals. The most active February soybean contract on NCDEX traded at 3,653 rupees per 100 kg, up 3% from the previous close. All-India arrivals of the oilseed were, however, estimated to be steady at 200,000 bags (1 bag = 100 kg). Downward revision of soybean production in Madhya Pradesh in 2017-18 (Jul-Jun) at 5.3 mln tn against 6.9 mln tn estimated in the first advance estimate is seen supporting prices of the oilseed.