Futures contracts of soybean rose on NCDEX due to firm demand from oil millers. Strength in key soybean contracts on the Chicago bourse also supported soybean futures on the domestic exchange. The most-active December contract on NCDEX was up 0.7% at 4,042 rupees per 100 kg.

Global demand is seen weak as exports of soymeal, a derivative of soybean, are likely to drop in the new season due to low output and non-competitive prices in world market, SMC Investments and Advisors said in a report. In the benchmark market of Indore, prices were steady at 4,000 rupees per 100 kg. Arrivals also remained unchanged at nearly 4,300-4,500 bags (1 bag = 100 kg).

Soybean futures finished on Monday with losses of 3 3/4 cents to 4 1/2. Soybean meal closed $0.70/ton lower, while bean oil was 44 points lower. Soybean harvest had progressed 3 percentage points in the USDA’s weekly Crop Progress Report. The 94% completion was even with last year’s pace, but still lags slightly behind the average. Export inspections were the best of the marketing year at 1.943 MMT shipped for the week ending 11/21. The marketing year total was updated to 14.383 MMT which is 2.171 MMT above last year’s pace.

Of those inspections, China accounted for 69.49% (1.35 MMT). The USDA indicated reported two private soysbean export sales to unknown destinations for 2019/20 MY totaling 323,000 MT. They had previously been reported as corn sales. Brazilian Soybean planting has reached 79% of estimated planting for Brazil, up 12% over last week. The AgRural also updated their Brazilian bean forecast to be a record 120.7 MMT for 19/20.

Brazilian farmers are petitioning to abolish the ag moratorium, a piece of legislation that prohibits deforestation for farming. In response to the proposal EU announced it would not purchase any beans from the country if the moratorium were to be abolished. After months of ASF, we are starting to get a sense of the effects on the soybean market, reports are stating Chinese accumulated imports of soybeans are much lower than last year, with American soybeans 31.8% lower and Brazilian beans 13.5% below last year’s pace.