MUMBAI (Commodity Online): Soybean complex continued to exhibit weak trends on Saturday due to profit taking and weak global cues. The US crop report released on Thursday has shown higher-than-expected forecast of oilseed supplies, although drought conditions in US and Argentina continue to cause worry.
At National Commodity and Derivatives Exchange of India, soybean January contract has weakened 1.14% to Rs 2482 per 100 kg while refined soyoil per 10 kg has fallen by 0.78% to Rs 707.90. This week soybean January contract at NCDEX has gain 1.78% till Friday while refined soyoil futures fell 0.4%. Support levels for soyoil Feb contract is seen at Rs 703-706, resistance at 718-722 while soybean Feb contract support is seen at Rs 2550-2565 and resistance seen at Rs 2600-2630, Angel Commodities said.
Global oilseed production for 2011/12 is projected at 457.4 million tons, down 0.3 million tonnes. Global soybean production is projected at 257 million tons, down 2.2 million mostly due to lower production forecasts for South America. The Argentina soybean crop is projected at 50.5 million tons, down 1.5 million due to lower projected area and yields.
Angel Commodities in its oulook releasd on Saturday said: Oilseed complex are expected to trade slightly lower on account of profit taking and lower demand at prevailing prices. For long term perspectives, oilseeds complex is bullish as tight supply due to lower global ending stocks of oilseeds as dry weather concern in Argentina and Brazil are in favour of the bulls. Lower production estimates of domestic rape/mustard seed for this year as compared to last year due to lower sowing acreage coupled with crop damage talk of rape/mustard seed due to frost in Rajasthan and Haryana are also in favour of the bulls.
