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Soybean Weakens on Production Estimates

Published 11/03/2011, 09:10 AM
Updated 05/14/2017, 06:45 AM
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November Soybean futures ended slightly higher on account of profit taking after continuous fall in last 4 trading sessions as higher production estimates of domestic soybean coupled with arrival pressure. In Brazil soybean planting of 2011 12 season is 41% complete compared to 28% last year. Brazilian soybean growers have sold 31% of the 2011 12 crop in forward business. The EU'S imports of soy meal will continue to rise this year and are forecast at 23.6 million tons, up 2.6% from 2010-11.

The Soybean Processors Association of India (SOPA) revised soybean production in 2011-12 to 11.93 million tonnes against earlier estimate of 11.65 million tonnes. Arrivals were around 5 lakh bags in major mandis of Madhya Pradesh, 3 lakh bags in Maharashtra and 2 lakh bags in Rajasthan (1 bags=100 Kg).

Slow demand from China for US soybeans plus hefty supply of South America soybeans amid favorable weather condition for crop for the coming season also added bearish market sentiments. US soybean exports declined to 37.4 million tonnes, down 1.1 million tonnes as compared to previous week. Brazil crop expectation is as record high as 75 million tonnes. US completed about 90% of soybean harvesting.

Mustard Seed

NCDEX November RM Seed futures ended slightly higher in tandem with vegetable oil and other oilseeds. Dry weather in EU ahead of the harvest has hit EU's rapeseed production, which estimates at a fouryear low of 18.8 million tons in 2011-12, down 7.4% on year. EU's rapeseed imports may rise 19% to 3.1 million tons this year on top of an 18% increase in 2010-11. Increased demand from the EU comes as global rapeseed production is forecast to fall by nearly 2.0 million tons to a three-year low of 58 million tons.

Increased MSP of RM Seed is also in favour of the bulls. 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 higher due to firm CPO futures at BMD Derivative Exchange as improved global market sentiments on Wednesday and higher export figure of Malaysian palm oil and improved demand of edible oil on winter/marriage season demand.

Malaysian Palm Oil Exports

As per Intertek Agri Services (a cargo surveyor), Malaysia’s palm oil exports in the month of October increased to 1.65 million tonnes, up 8.5% as compared to previous month.

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