NCDEX Soybean Trades Up On Global Cues: April 24, 2012

NCDEX soybean futures traded higher on 4th consecutive trading sessions 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. Argentina's Agriculture Ministry on Thursday pegged the soy crop at 42.9 million tonnes, compared to the latest USDA estimate of 45 million tonnes. 

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.  

Arrivals in major mandis were 50,000 bags in Madhya Pradesh, 25,000 bags in Maharashtra and 8,000 bags in Rajasthan (1 bag=100 kg). 3rd Advance Estimates of Crop Production for 2011-12 released yesterday by Ministry of Agriculture which shows production estimates of soybean of 12.24 million tonnes.

NCDEX RM Seed Weakens On Arrival Pressure

NCDEX May mustard seed futures ended in red on account of arrival pressure. 

The government of Rajasthan is planning to impose a stock limit and 3rd Advance Estimates of Crop Production for 2011-12 released yesterday by Ministry of Agriculture which shows production estimates of rape/mustard seed of 6.96 million tonnes. 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. 

NCDEX Soy Oil Jumps On Positive Global Cues

NCDEX May soy oil futures traded higher in the morning hours on account of firm overseas market. However, higher prices could not sustain and an hour before closing the market price came under pressure and finally closed in red on account of profit taking. 

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 prices 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.