NCDEX March soybean futures ended mildly higher on account of short covering after yesterday’s sharp fall. As per traders, soybean arrivals in Madhya Pradesh were around 1 lakh bags, (1 bag = 100 kg). In Indore, soybean prices (auction) were quoted at Rs 2,370-2,430/100 kg, For plant delivery were quoted at Rs 2,460- 2,500/100 Kg.
The USDA’s monthly supply & demand report which was released on Thursday and considered neutral to slightly negative for soybeans.
Global oilseed production for 2011/12 is projected at 452.5 million tons, down 4.9 mln tons from last month. Brazil soybean production is forecast at 72 million tons, down 2 mln due to lower projected yields. The reduction reflects hot, dry conditions in southern Brazil in Dec and Jan. Argentina soybean production is projected at 48 million tons, down 2.5 million, despite widespread rains in recent weeks.
U.S. soybean supply and use projections for 2011/12 are unchanged this month, leaving ending stocks at 275 million bushels. Global oilseed ending stocks are projected at 71.2 million tons, down 3.6 mln from last month.
USDA’s Weekly export sales report released on Thursday, which shows that the net weekly export sales for soybeans came in at 603,200 tonnes for the current marketing year and 55,000 for the next marketing year for a total of 658,200.
As of February 2nd, cumulative soybean sales stand at 77.6% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 83.3%.
Meal sales came in at 161,900 tonnes for the current marketing year and 700 for the next marketing year for a total of 162,600. Net oil sales came in at 22,200 tonnes which was much higher than expected.
NCDEX April RM Seed tended slightly higher on account of lower production estimates of Mustard seed this year (down 10-12%) as compared to last year. Total arrivals of RM Seed throughout India were about 1 lakh bags including 50,000 of old crops (bag=100 kg).
Total arrivals in Rajasthan were about 30,000 bags including 12000 bags of new crops; Rajasthan is the largest producing states in India. In Uttar Pradesh arrivals of fresh crop about 14000 bags and 2000 bags of old crop, Madhya Pradesh was witnessed around 6000 new crop and 2000 old crop.
For the long term perspectives, RM Seed is expected to trade higher on account lower sowing acreage of RM Seed this year as compared to last year.
NCDEX March refined soy oil futures traded lower on account of poor demand of edible oil at prevailing prices. Lower exports figures of Malaysian palm oil also added bearish market sentiments.
As per cargo surveyor Intertek Testing Services, Exports of Malaysian palm oil during the February 1-10 fell 7.7 % to 342,982 tonnes from 371,635 tonnes shipped during Jan. 1-10.
As per SGS (another cargo surveyor),Malaysia's palm oil exports in the first 10 days of February fell 4.3% from a month earlier to 337,618 metric tons.
Courtesy: Angel Commodities
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