Mumbai (Commodities Control) - NCDEX soybean futures today went on to make an upper circuit to rise by 387 Rs to close 5.9% up at 6845 Rs/Qtl.
Soybean futures went uphill on extreme tightness in spot availability of soybean as plants/traders are aggressively hedging against their forward commitment.
Plants have forward export commitments extending to end of April 2021 which is leading them to scrambling for spot soybean stock at sellers quotes.
Indian soybean meal current spot prices are far off parity against its South American counter parts to have any sustainable chance of export demand.
So the current race to cover soybean are for soymeal commitments done well before in last quarter, no fresh trades.
US Golf soymeal prices are hovering around $415 per MT while Indian soybean meal kandla FOR is quoted $700 per MT.
Huge spread between US and Indian meal prices eliminates possibility of fresh export bookings.
CBOT Soybean futures are likely to trade in range $13.5/$14.0 per bushel in for coming sessions.
NCDEX Soybean futures prices are in technical breakout which will likely to follow towards 7000/7100 Rs/Qtl in coming sessions.
NCDEX ref soy oil is likely to trade towards 1320/1350 Rs/10 Kg in coming week.
(Commodities Control Bureau)