The January soybean contract on NCDEX extended gains due to higher prices in Indore and because of strength in the edible oil basket.

The contract was 1% higher at 4,286 rupees per 100 kg on NCDEX.

Rising edible oil prices is a principal factor driving the rally in soybean in domestic market currently.

In Indore, the key market, soybean was sold at 4,250 rupees per 100 kg, compared with 4,050 rupees. Arrivals were at 1,500 bags (1 bag = 100 kg), down 500 bags, as stock with farmers is declining with the season nearing its end.

Soybean futures posted 4 to 6 3/4 cent gains on the close. Open interest rose a modest 2,087 contracts on Monday. There was a lot of rolling activity out of January.

January options expire on the 27th. Meal futures were up $1/ton. Soybean oil futures were 68 points higher after Tuesday trades, boosted by House action to reinstate blend credits.

Malaysian palm oil continues to climb in price, having made three consecutive gains it is up 775 ringgits since the beginning of the rally from October.

The IEG Vantage group estimates US soybean planting for the 2020/2021 crop to be 86.3m acres.