The July soybean contract on the National Commodity & Derivatives Exchange closed 0.6% higher after the government today raised minimum support price for the crop grown in 2019-20 (Jul-Jun), analysts said.

The cabinet approved a hike of 311 rupees per 100 kg in minimum support price to 3,710 rupees for soybean.

Strength in soybean contracts on the Chicago Board of Trade also supported the contract on NCDEX, analysts said. Prices rose on the American bourse following reports of lower-than-expected sowing in the US, the world’s largest producer.

Soybean futures saw 9 to 10 1/4 cent gains in most front months. Spillover strength in corn supported soybeans. Soybean meal was up $2.50/ton, with soy oil 36 points higher. The CME will be closed on Thursday in observation of Independence Day.

Official US May export data was released from Census on Wednesday, with US exporters shipping 2.56 MMT (94.08 mbu) of soybeans in that month. That was the second largest May total on record, behind only 2018 and a 6.72% jump from April. Of that total 1.28 MMT went to China.

Soy meal exports totaled 1.017 MMT, with soy oil at 93.319 MT, both down from last year’s respective May records. Trade estimates ahead of the Friday Export Sales report show 400,000-800,000 MT expected for old crop and 200,000-400,000 MT for new crop. Meal sales are seen at 150,000-350,000 MT, with oil at 5,000-25,000 MT.