NCDEX Soybean Trades Higher On Global Cues: April 23, 2012

NCDEX soybean futures traded higher on account of firm overseas market as lower global ending stocks coupled with  improved buying by China also supported prices. 

The Commission on Agricultural Costs and Prices (CACP), under the ministry of agriculture, has recommended a 30% rise in soybean and sunflower seed also added bullish market sentiments. 

Arrivals in major mandis were 30,000 bags in Madhya Pradesh, 20,000 bags in Maharashtra  and 7,000 bags in Rajasthan (1 bag=100 kg). As per WASDE (USDA), global oilseed production for 2011/12 is projected at 440.6 million  tons, down 5.2 million from last month. 

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. As per Oil World  forecasts, Argentina's 2012 soybean crop at 44.0 million tonnes down from 49.2 million in 2011. 

Brazil's crop is forecast at 65.0 million tonnes from 75.3 million tonnes in 2011. Weekly export sales from the U.S. declined 18.7% to 3.74 lakh tonnes in the week 12th April 2012 as compared to 4.60 lakh tonnes in corresponding week. 

NCDEX RM Seed Jumps On Lower Production Concerns

NCDEX May mustard seed futures traded higher on account of lower production estimates of RM seed this year (down 15%) as compared to last year. Strong gains in other oilseeds and edible oil also added bullish market sentiments. As per COOIT, the country's rapeseed output is estimated to drop by 12.6 percent to 6.03 million tonnes in the year to June 2012. 

The overall  rabi (November-March) oilseed crop for 2011-12 is estimated to fall  to 8.79 million tonnes from 9.87 million tonnes last year, with a drop in sown area from 9.72 million hectares last year to 9.07 million ha this time.

RM seed meal shipments during the financial year 2011- 12 (Apr-Mar) were 1,171,895 tonnes (value Rs. 1028.30 cr), up by 25 per cent from 9,36,238 tonnes (value Rs. 972.73 cr) a year ago.  

NCDEX Soy Oil Gains On Positive Gglobal Cues

NCDEX  May soy oil futures traded higher on  account of firm overseas market. Depreciation of INR against US dollar in the last week also provided support to the bulls as imports of edible oil would be costly. 

India imports edible oils about 50% of its total requirements. The import of edible oils in the month of March 2012 is reported at 702,335 tons compared to 412,088 tons in March 2011 up by 70%. 

The overall import of edible oils during November 2011 to March 2012 was 3,705,739 tonnes compared to 3,024,496 tonnes i.e. up by 22.5%. Average crude palm oil import price was 1172 per tonne (CIF) in the month of March at Indian  ports, it was higher than $1148 per tonne in February. 

However, crude soybean oil prices were 1283/tonnes in the month of March, slightly down as compared to 1285/tonnes in the February. 

Malaysian palm oil stocks dropped below the 2-million-tonne mark for the first time this year, reinforcing views of a tight global supply amid a lower soy crop in drought-hit South America. As per Intertek exports of Malaysian palm oil products for April 1-20 fell 5.6 percent  to 8.44 lakh tonnes compared with 8.96 tonnes shipped during  March 1-20.