Soybean Weakens on Profit Booking

NCDEX November Soybean futures ended lower on account of profit taking after continuous rise from last 3-4 trading sessions. Most of the Mandis were remain closed on occasion of Diwali.

As per USDA’s weekly export inspections came in at 41.15 million bushels which was in line with trade expectations and compares with an average of 27.8 million necessary each week to reach the USDA projection. For the weekly crop update, traders see harvest near 80- 85% complete as compared with 69% last week. With better weather in Brazil, some analysts are increasing their production outlook to a record high above 75 million tonnes from 74.3 million this past season.

As per USDA’s weekly export sales report which released on Friday, which shows that the export sales for soybeans came in at 672,400 metric tonnes which was near the low end of expectations. According to the latest WASDE report, global oilseed production for 2011/12 is projected at 453.0 million tons, up 1.5 million tons from last month.

Production increases for soybeans, rapeseed, sunflower seed, and cottonseed are only partly offset by lower peanut production. Average yield of US soybean declined to 41.5 bushels per acre from 41.8 last month and trade expectations was about 42 bushels per acre.

Mustard Seed

NCDEX November RM Seed futures traded higher due to hike in MSP of RM Seed from Rs1850 to Rs2500/quintal improved demand of edible oil.

Refine Soy Oil

NCDEX November Refined Soy oil futures traded range bound due to major mandis were closed on occasion of Diwali.

Indonesian government lowers the crude palm oil export tax by 1.5% to 15% for November month as compared to last month due to declining global prices during the last couple of months meanwhile Malaysian and Indonesian Govt. agree to review crude palm oil tax in near term.

Malaysian Palm Oil Exports

As per SGS (another Cargo surveyor), Malaysia’s palm oil exports in first 25 days of October 1-25 increased to 13.95 lakh tonnes, up 16.4% as compared to previous month of 11.99 lakh tonnes during the same period.