Soybean Rises On Short Covering

Soybean futures traded higher on account of short covering on Saturday after continuous fall in the last trading sessions and some fresh buying was witnessed at lower levels as value buying.

Arrivals of soybean in Madhya Pradesh declined to 80,000 bags on Saturday as compared to 1 lakh bags Friday , Maharashtra 50,000 bags and Rajasthan 20,000 bags (1 bag=100 kg). In Indore Mandi (auctioned), soybean quoted Rs 2,320-2,350 per 100 kg on Saturday, up around Rs 10 /100 kg from Friday.

For plant delivery, soybean prices were quoted at Rs 2,420-2,460 per 100 Kg, up around Rs 10/100 Kg as compared to Friday.

USDA’s weekly export sales report released on February 02, 2012 which shows that the Net weekly export sales for soybeans at 308,400 metric tonnes for the current marketing year and 60,000 for the next marketing year for a total of 368,400.

Cumulative soybean sales stand at 75.8% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 82.2%. Sales of 268,000 metric tonnes are needed each week to reach the USDA forecast.

Meal sales came in at 74,700 metric tonnes as compared with a weekly average of 96,000 tonnes necessary each week to reach the USDA forecast. Oil sales were 6,700 metric tonnes as compared with 10,000 necessary each week to reach the projection.

NCDEX April RM Seed traded slightly higher on account of short covering after continuous fall in the last 9 trading sessions. Gains in other oilseeds and edible oil also provided support to the bulls.

However, for long term perspectives, RM seed are expected to trade higher on account of lower sowing acreage of RM Seed this year as compared to last year. According to PIB, as on January 27, 2012, total area under oilseeds cultivation is reported to be 84.35 lakh hectares against 93.15 lakh ha last year.

Higher area has been reported under oilseed crops in Tamil Nadu (1.04 lakh ha), Jharkhand (0.63 lakh ha), Uttar Pradesh (0.51 lakh hectare), Gujarat (0.37 lakh hectare), and Assam (0.21 lakh hectare).

NCDEX February refined soy oil futures traded slightly higher on account of short covering after continuous fall in the last 6-7 trading sessions due to rupee appreciation against US dollar which will make cheaper imports of edible oil as India imports about 50% edible oil of its total requirement.

As per SGS (cargo surveyor), Malaysian Palm Oil exports in the month of January 2012 fell to 1.29 million tonnes, down by 13% as compared to last month (December 2011). Imported CPO price were quoted lower at Rs 51,200/tonnes on Friday as compared to Rs 51,300/tonnes on Thursday.