NCDEX March soybean futures ended traded higher on account of improved demand of soybean from crushers coupled with lower arrivals.
Firm overseas market also provided support to the bulls. As per traders, soybean arrivals in Madhya Pradesh were about 1 lakh bags (1 bag = 100 kg).
In Indore, soybean prices (auction) were quoted at Rs 2,380-2,450/100 kg, For plant delivery were quoted at Rs 2,470-2,530/100 Kg. China’s soybean acreage is expected to fall continue this year also as compared to previous year.
A soybean producer group in Paraguay said that drought has caused production estimates to be revised down to 4.6 million tonnes for this year's crop from 8.4 million tonnes last year.
There was news that dock workers in Brazil are considering a 24-hour work stoppage on Wednesday also provided support to the prices.
There is an expectation of lower global ending stocks in the USDA’s monthly supply & demand report which will release on February 09, 2012 (Thursday) due to lower production estimates of South America (Argentina and Brazil) .
An analytical firm Informa Economics cut its forecast for Argentina's 2011/12 soybean production to 46.5 million tonnes from 51 million.
It lowered its forecast of Brazil's soybean crop to 70 million tonnes, from 72 million previously. Brazil produced a record 75.3 million tonnes of soybeans last season and is expected to harvest 71.5 million tonnes this year, according to its agriculture ministry.
NCDEX April RM Seed traded higher on account of improved demand of RM seed from millers coupled with lower sowing acreage of RM Seed this year as compared to last year. Gains in other edible oils and oilseeds also provided support to the bulls.
According to Ministry of Agriculture, as on February 03, 2012, total oilseeds output is likely to fall 6% to 30.53 million tonnes in the current crop as compared to last year in corresponding period. Mustard output, the most crucial of rabi oilseeds, is also seen 8.5% lower on year at 7.5 mln tons.
NCDEX March refined soy oil futures traded higher on account of improved demand of edible oil coupled with lower production estimates of oilseeds.
Gains in CPO futures at BMD, Malaysia also added bullish market sentiments. Malaysia, the world's No. 2 palm oil producer has set its duty-free export quota for crude palm oil at 3.6 million metric tons for the year ahead after several weeks of delay.
Malaysia's issuance of the duty-free export quota could boost palm oil exports from the country in February as exporters rush to fulfil export contracts and slow a build-up in end month palm oil stocks.
Imported crude soy-oil price were quoted higher at Rs 62,000/tonnes on Wednesday as compared to Rs 62,500/tonnes on Tuesday. Imported CPO price were quoted higher at Rs 52,000/tonnes on Wednesday as compared to Rs 51,800/tonnes on Tuesday.
Malaysia's end-January palm oil stocks likely rose 1% from a month ago to around 2.05 million metric tons as exports continued to fall, with buyers shifting to cheaper Indonesian oil. Cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd.
Estimated January shipments from the world's second-largest producer fell by 12% to 1.32 million tons and 13% to 1.30 million tons, respectively, compared with December.
Outlook:
Oilseed complex are expected to trade higher on account of improved demand of edible oil coupled with lower production estimates of oilseeds.
There is an expectation of lower global ending stocks in the USDA’s monthly supply & demand report which will release on February 09, 2012 (Thursday) as lower production estimates of South America (Argentina and Brazil) due to bad weather conditions.
Courtesy: Angel Commodities
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