Soybean prices on Tuesday rose by Rs 24 to Rs 3,966 per quintal in futures market as traders created fresh positions in line with spot demand.

On the National Commodity and Derivatives Exchange, soybean for February delivery rose by Rs 24, or 0.61 per cent, to Rs 3,966 per quintal with an open interest of 33,690 lots.

Soybean for March delivery rose by Rs 16, or 0.36 per cent, to Rs 3,940 per quintal with an open interest of 1,44,825 lots.

Market players said raising of fresh positions by speculators on the back of higher demand led to rise in soybean prices.

Soybean futures rallied back from the midday dips to finish net neutral on the day. March beans picked up a half cent by the close. USDA reduced the estimated farm average price from $9 flat to $8.75/bu.

Soybean meal futures ended down $0.60/ton on report day. The USDA kept the average price for soy meal at $305/ton.

Soybean oil futures ended with the gain of 10 points. USDA lowered the average price for soybean oil to 33.50c/lb, a half cent lower than Jan. The WASDE had soybean crushed for the MY at a consistent 2.05bbu, but lowered meal and oil production estimates.

The WASDE report reduced 19/20 US bean carryout to 425 million bushels vs. trade ideas for 443 million bushels. USDA hiked projected exports 50 million bushels for the year.

Brazilian bean production was increased by 2 MMT to 125 MMT, which would be a record. CONAB estimated Brazil’s bean crop at 123.2 MMT, which was up from their prior estimate of 122.2 MMT.

USDA projected World ending stocks are 98.9 MMT, following the larger than expected increase in Brazilian production.