Last Updated : 30 April 2009 at 15:40 IST

Soya Futures bullish on concerns from extractors

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Commodity Online
MUMBAI: Range-bound soya bean prices keep the commodity stocks jittery on bourses as concerns of swine flu; low output from Argentina and larger imports by China threatens the global supply of Soya bean.

However, MCX May contract for Soya bean futures remained at Rs.2618 per quintal slightly up from its pervious levels. Reports suggested that rising concerns over swine flu outbreak in Mexico, USA and Canada the commodity prices firmed up on account of selling pressure.

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Soy meal prices at Kandla port were quoted remained range bound between Rs.23300-23500 per tonne as compared to Rs.23700-23800 per tonnes previous day.

However, commodity stocks on the bourses traded low on Wednesday following firming Soya Futures. Ruchi Soya Industries Ltd closed at Rs.28.05 marginally down by 0.18%. Solvent extractor, Gokul Refoils and Solvents Ltd closed with no change from previous price of Rs.217. However, leading solvent extractor and edible oil exporter, Gujarat Ambuja Exports Ltd lost 1.27% to Rs.17.92 on Bombay Stock Exchange on Wednesday.

According to experts, for medium term and long term, soya bean prices would remain bullish on account of lower global soybean production estimates to 218.8 million tonnes and higher export demand of Indian soyameal from Asian and Middle East countries in coming year.

China is likely to import 3.83 million tonnes of soybean in April and 3.18 million tonnes in May according to Chinese government estimates issued last week.

China’s soybean and meal futures traded lower at Dalian Commodity Exchange (DCE) amidst pressure of swine flu outbreaks in Mexico and USA. Swine flu outbreak will impact on meat and feed demand. However, lower harvest in Argentina helped the prices to get stronger n short term.

Soybean prices are expected to trade range bound amidst subdued trading activity for short term. There is possibility of slight recovery from sharp fall on concern of swine flu. However, for medium term and long term, it is bullish on account of lower production estimates of Argentina in a range of 35-37 million tonnes and unofficial person or traders are expecting below 35 million tonnes.