November Soybean futures traded slightly lower on account of weak overseas market and higher production estimates of domestic soybean coupled with arrival pressure. Arrivals were around 6 lakh bags in major mandis of Madhya Pradesh.
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 slightly higher on account of short covering after Friday’s sharp fall. Improved demand from millers as higher prices of vegetable oil. Increased MSP of RM Seed also provided support to the prices. MSP of RM Seed increased from Rs1850 to Rs2500/quintal to protect the farmers and boost the oilseed production as India imports edible oil about 50% of its total requirement.
Refine Soy Oil
NCDEX November Refined Soy oil futures traded slightly higher on account of short covering after Friday’s sharp fall.
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.