Soybean futures rise on spot demand

Soybean prices increased by Rs 92 to Rs 3,818 per quintal in futures trade on Wednesday as speculators raised their positions supported by a strong spot demand.

Marketmen said fresh positions created by participants following upsurge in domestic demand pushed up soybean prices here.

On the National Commodity and Derivatives Exchange, soybean contracts for September delivery traded higher by Rs 92, or 2.47 per cent, to Rs 3,818 per quintal in an open interest of 8,110 lots.

Soybeans futures posted 12 to 14 1/4 cent gains in the nearby contracts on Tuesday. Soybean meal was $4.40/ton, with soy oil 12 points higher. A rumor was working its way through the mill this morning that China is expected to buy more US Ag products, though advisor Navarro downplayed any expectations.

A private export sale of 138,000 MT of 19/20 soybeans were reported to Mexico by USDA this morning. They also reported sale of 195,750 MT of soybean meal to Mexico for 19/20 (155,000 MT) and 20/21 (40,750 MT) delivery.

USDA is expected to show a reduction of 25 mbu to old crop ending stocks to 1.045 bbu on Thursday. New crop carryout is estimated to be cut by 101 mbu to 654 mbu. CONAB updated their 18/19 Brazilian soybean crop estimate to 115.03 MMT, a slight increase from Aug and vs. USDA’s 117 MMT.