NCDEX May soybean futures ended higher on Tuesday due to short covering after continuous fall in the last 4-5 trading sessions. There is market talk that the India can get soy meal export order from China and firm soybean futures of soybean at CBOT provided support to the bulls.
Weekly export inspections report released on April 18, 2011, which is reached 14.2 million bushels, it was lower than expected. Cumulative exports have reached 84.6% of the USDA forecast for the season as compared with 80.9% as the 5-year average for this time of the year.
News: Government in its third advance estimate has estimated the record production of India’s oilseeds at 30.25 million tonnes in 2010-11 vs 24.93 million tonnes in 2009-10. Soybean output is estimated at 12.59 million tonnes against 10.05 million tonnes in 2009-10 and Groundnut at 7.09 million tonnes against 5.5 million tonnes in 2009-10.
NCDEX May RM Seed futures ended ended higher on Tuesday due to short covering after continuous fall in the last 4-5 trading sessions. Huge gains in other oil seeds and edible oil also added bullish market sentiments.
Arrivals in major mandis of Rajasthan were 5.20 lakh bags and throughout India were 6.75 lakh bags.
Refined Soy Oil
NCDEX May refined soy oil futures surged sharply on account of short covering after continuous fall in the last 4-5 trading sessions and some fresh buying was witnessed at lower levels in anticipation of higher prices in coming days.
Vegetable oil imports continued a declining trend for the fifth consecutive month this year due to increased availability from domestic sources. As per Solvent Extractors’ Association (SEA), import in the month of March declined 31.1 per cent to 435,735 tonnes as compared to 632,868 tonnes as compared to last year in the month of March.
In the first five months of the current oil year (November 2010- October 2011), however, total imports averaged a total decline of 16.5 per cent to 3.13 million tonnes, as compared to 3.75 million tonnes in the corresponding period of the previous year.
Malaysian Palm Oil Exports:
As per SGS (a cargo surveyor), Malaysia’s palm oil exports in the month of March rose 2.3 percent to 1.12 million tonnes as compared to the last month (February).
Soybean prices are expected to trade slightly higher in anticipation of better export order of soy meal from china and firm overseas market.
Courtesy: Angel Commodities