Soybean contracts on the NCDEX hit a near four-month low of 3,834 rupees per 100 kg as demand from domestic millers was weak. Weakness in global edible oil prices after the outbreak of coronavirus also weighed on prices.

The most-active March contract was 1.1% lower at 3,844 rupees per 100 kg. For the rest of the week, downside in soybean contracts is seen limited because of declining arrivals in domestic markets.

In Indore, the benchmark market, soybean was largely steady at 3,950-4,000 rupees per 100 kg.

Soybeans were lower on Tuesday, with front months down as much as 1 1/2 cents at the close. Soymeal futures were $1.10/ton higher, but March soybean oil futures fell 9 points. NOPA crushers used 176.94 mbu of soybeans in January. That was 1.2% higher than December’s crush, and 3% yr/yr for a new January record; the Jan crush is also an all-time high for any month.

Soybean oil stocks were at 2.012 billion lbs at the end of January. That was a 14.5% increase over December, a 29.9% increase yr/yr, and the largest stocks since April of ’08.

Soybean exports from this morning’s USDA Export Inspections report were 54.9% higher wk/wk to 992,294 MT. The week’s soybean exports were below the same week last year by 8.42%.

Mexico was the top destination for the week’s soybeans with China a close second, collectively 42.33% of the week’s soybean shipments were to the two nations.

Accumulated soybean exports are 1.039 bbu through the week ending 02/13, which is 18.75% above last year’s pace. China will start granting tariff exemptions on 696 US goods including soybeans, with applications for Chinese firms beginning March 2. The exemptions, if accepted, are good for one calendar year.