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

NCDEX soybean futures traded higher on account of firm  overseas market. 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. Arrivals in major mandis were 35,000 bags in Madhya Pradesh, 22,000 bags in Maharashtra and 8000 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 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 Rises 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. 

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  (April-March) were 1,171,895 tonnes (value Rs. 1028.30 cr),  up by 25 percent from 9,36,238 tonnes (value Rs. 972.73 cr) a year ago.