The July soybean contract on the National Commodity & Derivatives Exchange settled around 0.7% higher due to slow monsoon progress in the country, analysts said.

The very severe cyclonic storm ‘Vayu’ set to hit Gujarat coast on Thursday morning is likely to drag progress of monsoon current. This could delay rains in major soybean growing regions.

Soybean futures closed with 17 to 18 3/4 cent gains in the nearby contracts.

Soymeal was up $5.20/ton, with bean oil 34 points higher. A look at the 7-day QPF shows 3-6 inches for most of the ECB over the next week, with most of the totals later this weekend.

With soybean planting progress 28% behind normal on Sunday, the rains threaten to even further delay progress.

Analysts expect USDA to show 200,000-500,000 MT in old crop soybean sale for the week that ended on June 6, with 100,000-300,000 MT for new crop.

In their US balance sheet, USDA trimmed old crop cash average price by a nickel to $8.50, with their new crop cash price up 15 cents to $8.25.

USDA’s chief economist stated they did not have enough info to change the US new crop soybean production numbers, but he expects an adjustment in the July report.