Soybean futures traded lower on account of lower export demand of oil meal and lackluster demand of soybean from solvent extractors. Arrivals of soybean in Madhya Pradesh were 1 lakh bags on Friday as compared to 1.25 lakh bags Thursday , Maharashtra 60,000 bags and Rajasthan 25,000 bags (1 bag=100 kg). In Indore Mandi (auctioned), soybean quoted Rs 2,310-2,340 per 100 kg on Friday, down around Rs 25 /100 kg from Thursday.
For plant delivery, soybean prices were quoted at Rs 2,400-2,450 per 100 Kg, down around Rs 20/100 Kg as compared to Thursday. Strength in INR against Us dollar also added bearish market sentiments as soymeal export would be less attractive. USDA’s weekly export sales report released on February 02, 2012 which shows that the Net weekly export sales for soybeans at 308,400 metric tonnes for the current marketing year and 60,000 for the next marketing year for a total of 368,400.
Cumulative soybean sales stand at 75.8% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 82.2%. Sales of 268,000 metric tonnes are needed each week to reach the USDA forecast.
Meal sales came in at 74,700 metric tonnes as compared with a weekly average of 96,000 tonnes necessary each week to reach the USDA forecast. Oil sales were 6,700 metric tonnes as compared with 10,000 necessary each week to reach the projection.
NCDEX April RM Seed traded lower 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. Arrivals will be peak from mid of February in major producing areas.
China restricted their imports of oil meal from India also added bearish market sentiments. Losses in other oilseeds and edible oil also provided support to the bears. 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 lower on account of weak overseas market as losses in CPO Futures at Bursa Malaysia Exchange, Malaysia. 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).
Strength in INR against Us dollar also added bearish market sentiments as edible oil imports would be cheaper as India imports about 50% edible oil of its total requirement. Imported CPO price were quoted lower at Rs 51,200/tonnes on Friday as compared to Rs 51,300/tonnes on Thursday.
Courtesy: Angel Commodities
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