NCDEX soybean futures traded slightly higher on account of firm overseas market as lower global ending stocks. Better export of USDA’s weekly export sales also added bullish market sentiments.
The USDA confirmed sales of 225,000 tonnes of US soybeans to unknown destination with 110,000 tonnes for the 2011/12 season and 115,000 for the 12/13 season. Thin arrivals of soybean also provided support to the prices.
Arrivals in major mandis were 40,000 bags in Madhya Pradesh, 35,000 bags in Maharashtra and 1,000 bags in Rajasthan (1 bag=100 kg). As per WASDE (USDA), global oilseed production for 2011/12 is projected at 440.6 million tons, down 5.2 million from last month.
Brazil soybean production is forecast at 66 million tons, down 2.5 million from last month as warm temperatures. Global soybean ending stocks are projected at 55.5 million tons, down 1.8 million from last month, and down 13.6 million tons from last year.
NCDEX RM Seed Edges Higher On Short Covering
NCDEX May mustard seed futures ended in green on account of short covering after yesterday’s sharp fall (down 3%). Gains in other oilseeds and edible oil also provided support to the prices. As per COOIT, the country's rapeseed output is estimated to drop by 12.6 percent to 6.03 million tonnes in the year to June 2012.
The overall rabi (November-March) oilseed crop for 2011-12 is estimated to fall to 8.79 million tonnes from 9.87 million tonnes last year, with a drop in sown area from 9.72 million hectares last year to 9.07 million ha this time.
RM Seed meal shipments during the finance year 2011-12 (April-March) were 1,171,895 tonnes (value Rs. 1028.30 cr), up by 25 per cent from 9,36,238 tonnes (value Rs. 972.73 cr) a year ago.