Soybean futures traded mildly higher on account of short covering after continuous fall in the last 4 trading sessions. Lower arrivals of soybean also provided support to the bulls. Arrivals of soybean in Madhya Pradesh were 1 lakh bags on Wednesday as compared to 1.25 lakh bags Tuesday , Maharashtra 60,000 bags and Rajasthan 40,000 bags (1 bag=100 kg). In Indore Mandi (auctioned), soybean quoted Rs 2,360-2,400 per 100 kg on Wednesday, up around Rs 15-20 /100 kg from Tuesday.
For plant delivery, soybean prices were quoted at Rs 2,450-2,490 per 100 Kg, up around Rs 15- 20/100 Kg as compared to Tuesday. Weekly export inspections released on Tuesday soybean export inspections came in at 41.5 million bushels which was well above trade expectations and compares with an average of 17.8 million necessary each week to reach the USDA estimate for the 2011/12 marketing year.
As per USDA weekly sales report which is released on January 26, 2012, soybeans exports figures came in at 466,300 tonnes for the current marketing year and 126,000 for the next marketing year for a total of 592,300 which was below trade expectations. Meal sales came in at 124,200 metric tonnes for the current marketing year and 2,400 for the next marketing year for a total of 126,600. Oil sales were just 2,500 metric tonnes as compared with a weekly average of 9,000 needed each week to reach the USDA forecast.
NCDEX April RM Seed traded mildly higher on account of short covering after continuous fall in the last 6 trading sessions. Slight gains in other oilseeds and edible oils also provided support to the prices.
However, for medium perspective, prices may come under pressure on account of weak demand of rape/mustard seed and meal coupled with fresh arrivals of RM seed in some parts of Uttar Pradesh, Haryana and Rajasthan.
China restricted their imports of soy meal from India also added bearish market sentiments. However, for long term perspectives, RM seed are expected to trade higher on account of lower sowing acreage of RM Seed this year as compared to last year.
According to PIB, as on January 27, 2012, total area under oilseeds cultivation is reported to be 84.35 lakh hectares against 93.15 lakh ha last year. Higher area has been reported under oilseed crops in Tamil Nadu (1.04 lakh ha), Jharkhand (0.63 lakh ha), Uttar Pradesh (0.51 lakh hectare), Gujarat (0.37 lakh hectare), and Assam (0.21 lakh hectare).
NCDEX February refined soy oil futures traded slightly higher on account of short covering after yesterday’s sharp fall in prices. Lower export figures of Malaysian Palm Oil in the month of January as compared to previous month (December).
As per SGS (cargo surveyor), Malaysian Palm Oil exports in the month of January 2012 fell to 1.29 million tonnes, down by 13% as compared to last month (December 2011). Imported crude soy oil price were quoted at Rs 63,000/tonnes on Monday as compared to Rs 63,500/tonnes on Friday.
Imported crude CPO price were quoted at Rs 51,700/tonnes on Monday as compared to Rs 52,400/tons on Friday. As per SEA of India, India imported 654,714 tons edible oil in Dec, down 21% from the month of Nov 2011.
Courtesy: Angel Commodities
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