Soybean futures declined to Rs 3,886.37 per quintal on September 16 as participants trimmed their positions as seen by the open interest.
Though Soybean new crop has started to hit the physical market, higher moisture in beans due to recent heavy rains in all the major soybean-producing states has increased demand for good quality soybean.
Strong demand in Mustard oil from end consumers in the past many months have taken Mustard-Soybean spread to the highest level in multiple months at around Rs 1,700 in the third week of August.
Soybean prices have rallied 15 percent in the last two months on CBOT which is likely to support domestic soybean prices in coming sessions.
In the futures market, Soybean for September delivery touched an intraday high of Rs 3,910 and an intraday low of Rs 3,856 per quintal on NCXEX.
Soybean for September delivery slipped 0.51 percent to Rs 3,886.37 per quintal with a business turnover of 3,560 lots.
Soybean for October delivery eased 0.96 percent to Rs 3,914 per quintal with a business turnover of 44,050 lots.
Mohit Vyas, Analyst at Kotak Securities said, “Soybean to remain more bullish in coming weeks compared to Mustard seeds. Hence, we recommend to sell Mustard October contract at around Rs 5,345 and buy Soybean October contract at around Rs 3,925 at the current price difference of Rs 1,420 for a spread target of Rs 1,165 with a stop loss to be maintained at Rs 1,580.”
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