NCDEX Soybean Ends Lower On Profit Booking: April 12, 2012

NCDEX Soybean futures traded higher in the morning hours on account of firm overseas markets as USDA’s bullish monthly supply & demand report which was released on Tuesday. However, an hour before closing, the market soybean prices fell sharply from high on account of profit taking and finally closed in red. As per WASDE, global oilseed production for 2011/12 is projected at 440.6 million tons, down 5.2 million from last month.

Brazil soybean production is forecast at 66 million tons, down 2.5 million from last month as warm temperatures. Global oilseed trade for 2011/12 is projected at 106.4 million tons, down 2 million mainly reflecting reduced soybean trade.

Lower soybean exports are forecast for Argentina, Brazil, Paraguay, and Uruguay. Global soybean ending stocks are projected at 55.5 million tons, down 1.8 million from last month, and down 13.6 million tons from last year. U.S. soybean exports for 2011/12 are increased 15 million bushels this month to 1.29 billion.

U.S. soybean ending stocks are projected at 250 million bushels, down 25 million from last month. Additionally, higher export figures of soymeal as well as total oilmeal as compared to last month. India's soy meal exports, in March 2012 increased by 12.16 per cent to 4,60,464 tonnes from 4,10,537 tonnes during the same period last year.

However, the soy meal shipments during the finance year 2011-12 (Apr-Mar) were 38,28,521 tonnes, slightly lower by 0.26 per cent from 38,38,775 tonnes a year ago.

As per a circular issued by NCDEX dated April 10, 2012, A Minimum Initial Margin of 10% of the value of the contract or VaR based margin whichever is higher will be imposed on all running contracts and yet to be launched contracts of RM Seed, Soybean, Ref Soy Oil contracts w.e.f. beginning of trading day Thursday, 12th April.

Major mandis of Madhya Pradesh remained closed from last 3 days long strike in protest against proposed Food Safety and Standards (FSS) Act.