Date: |
25-01-2011 |
Subject: |
Soy Bean Surges on Domestic Demand |
NCDEX March futures surged to 0.66 per cent on Saturday as compared to previous day’s close on account of firm overseas market and better prospects of domestic oil meal exports in coming days. Bullish report of USDA’s weekly export sales for soybean also added bullish market sentiments.
There is higher demand for Indian soybean meal from the South East Asian countries as a result of lower prices by $20-$25 per ton compared with other major exporters. The country’s soybean meal exports slumped 27% to 2.35 million tons in the marketing year that ended Sept. 30, 2010 due to higher Indian prices and lower soybean output- Soybean Processors Association of India.
USDA’s Weekly Export: Weekly export sales released on Thursday, which showed for soybeans above trade expectations at 732,400 metric tones for the current marketing year and 183,000 for the next marketing year for a total of 915,400. On top of the weekly sales total, the China delegation signed contracts for a total of 11.52 million tonnes of soybeans as there were further sales today after the 3.07 million tones announced on Thursday. Meal sales came in at 232,400 metric tonnes, also higher than expected.
Mustard Seed
NCDEX April RM seed futures ended slightly higher on account of higher prices other edible oils and oilseeds. Arrivals at major mandis were reported down at 45000 bags on Friday as compared to previous day of 50000 bags (bag=85 kg).
Production: As per latest data released by Ministry of Agriculture (January 13, 2011), the total sowing acreage of rape/mustard seed stood at 71.12 lakh hectares against 64.08 lakh hectares. Total rabi area under oilseeds, is reported higher at 89.40 lakh hectare against 87.30 lakh hectare last year.
Exports: India’s rapeseed meal exports in the month of December 2010 stood at 110237 million tonnes (up 114 %) as compared to 51402 million tonnes in the month of December 2009.
Refined Soy oil
Refined soy oil futures surged to 0.80 per cent on Saturday as compared to previous day’s close on account global shortage of edible oil couple with robust demand. Higher export figure of Malaysian palm oil also added bullish market sentiments.
Malaysian Palm Oil Exports:
As per Intertek Testing Services (a cargo surveyor), exports of Malaysian palm oil products for January 1-20 rose 9.74 percent to 852,607 tonnes from 776,910 tonnes shipped during December 1-20.
Outlook:
Refined soy oil prices are expected to trade higher on firm overseas market as global shortage of edible oil couple with robust demand. Lower production estimates of Malaysian palm oil coupled with rise in exports figures are in favour of the bulls.
Source : commodityonline.com
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