Futures contracts of soybean on the NCDEX rose due to buying at lower prices, analysts said, adding that the outlook remains bearish as harvesting of mustard, a substitute edible oil, is likely to start in the next few days.

Over the past one month, soybean prices on the NCDEX have fallen nearly 400 rupees.

The most active March soybean contract on the NCDEX was 0.8% higher at 3,942 rupees per 100 kg.

Weakness in global soybean prices due to weak demand from China is also seen weighing on prices on the domestic exchange in the coming days.

Soybean traders dropped the prices of the front months from 2 1/2 to 2 3/4 cents at the close on Friday. Soybean meal was also $0.80/ton lower, with 15 point losses in the soybean oil front month. The Commitment of Traders report showed managed money was more net short wk/wk to 92,172 contracts.

Spec trader open interest was up 14,274 contracts with the majority as new shorts. On Tuesday, managed money was more net short in soybean meal as well. The OI was higher, and managed money meal traders were at their strongest net short on record, which is 68,150 contracts.

Soybean oil spec traders were less long in the weekly update. There was new selling and long liquidation noted. USDA’s long-term projection estimates soybean planting acreage at 84 million for 2020, with the following years climbing to 86 million. They estimate a 3.46% increase to 20/21 soybean exports.

Meal and oil exports are projected to decline in20/21 before picking back up in the long term. Prior to the NOPA report release next Tuesday, traders estimate 173.75 mbu of soybeans crushed by NOPA members during January.