Futures contracts of soybean on NCDEX rose 0.8%, after opening subdued in initial trade, as a lag in kharif sowing led to a rebound in prices.

The front-month July soybean was at 3,625 rupees per 100 kg, up 0.9%, while the most-active August contract traded at 3,687 rupees, up 0.7%.

According to farm ministry’s data soybean was sown on 5.19 mln ha across the country, down 18.9% for the same period last year. Market participants had expected the acreage to rise following a 311-rupee per 100 kg hike in the minimum support price for the oilseed in 2019-20.

However, with the progress in rainfall in Madhya Pradesh, Rajasthan and parts of Maharashtra, acreage is likely to rise in the coming weeks.

Soybean futures saw 10 to 11 1/2 cent losses in the front months. August soybean meal was down $3.20/ton, with soy oil 3 points lower. This morning’s USDA Export Inspections report showed soybean exports of 854,373 MT for the week ending on July 11.

That was a 12.17% jump from the previous week and 34% above the same week last year. Of that total 460,302 MT was headed to China. The monthly NOPA report indicated its members had crushed just 148.843 mbu of soybeans during June, well below analysts’ estimates.

That was down 3.85% from May and a 6.53% drop from last June. Soy oil stocks came in just above the average trade estimate at 1.535 billion lb. The weekly USDA Crop Progress report indicated 95% of the crop emerged, with 22% in the blooming stage (49% average).

Crop conditions ended up seeing a 1% improvement to 54% gd/ex, with the Brugler500 up 2 points to 347. That’s 20 points higher than the same week in 1993.