NCDEX March soybean futures ended in red on account of profit taking after continuous rise in the last 3 trading sessions.
However, for long term perspective, soybean prices are expected to trade higher on account of lower global ending stocks of soybean coupled with dry weather concern of South America (Brazil and Argentina), Brazil is the second and Argentina is a third largest producer of the Soybean in the world after USA. There is report that Brazil’s output estimates may decline further which also added bullish market sentiments.
Fresh Chinese Soybean buying from U.S are also in favour of the bulls. As per traders, soybean arrivals in Madhya Pradesh were around 1.15 lakh bags, Maharashtra 65,000 bags and Rajasthan 25,000 bags (1 bag = 100 kg). In Indore, soybean prices (auction) were quoted at Rs 2,470-2,540/100 kg and for plant delivery were quoted at Rs 2,550-2,590/100 Kg.
As per USDA’s weekly export inspections which is released on February 21, 2012. Weekly export inspections came in at 38.4 million bushels which was near the high end of trade expectations. Exports need to average 15.6 million bushels per week to reach the USDA projection for the year.
Further, reports that China, the major buyer of the Oilseeds would revive its procurement to strengthen its reserves are likely to add to the bullish sentiments. In this respect Chinese delegation signed deals to buy 8.62 million tonnes of U.S. Soybeans.
In addition to this renewed dry weather conditions in Brazil and Argentina is likely to hinder growth of the sown Soybean crop. This may lower the availability of the protein crop in the global markets providing support to the prices.
NCDEX April RM Seed traded lower on account of profit taking after continuous rise in the last 3 trading sessions. Loses in other oilseeds and edible oil also provided support to the bears. However, for long term perspective, RM Seed prices are expected to trade higher on account of lower production estimates of RM Seed this year (down 10-15%) as compared to last year. Total arrivals of RM Seed throughout India were about 1.60 lakh bags including 35,000 of old crops (bag=100 kg).
NCDEX March refined soy oil futures ended in red on account of profit taking after continuous rise in the last 3 trading sessions. According to SGS Malaysian palm oil exports during 1-20 Feb stood at 7.78 lakh tonnes, down 0.6 per cent as compared to 7.82 lakh tonnes in the same period previous year. China remained the major buyer followed by EU, U.S and India. Malaysia's palm oil January 2012 production stood at 12.87 tonnes down 13.8% as compared to December 2011.
Palm oil stocks slipped to a fivemonth low to 20.07 tonnes as compared to 20.58 tonnes in December 2011. Imports in 2011-12 are expected to turn costlier as Indonesia hiked export duty on crude palm oil (CPO) by 1.5% to 16.5% and lowered duty on refined Palmolein (RBD) from 15% to 8%. India imports about 50% of its total requirement.
Courtesy: Angel Commodities
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