Soybean Ends Higher on Global Cues

NCDEX November Soybean futures ended higher on improved demand from solvent extractors and stockiest at prevailing prices. Firm overseas market as improved global market sentiments in anticipation of some measures will be taken about the euro debt crisis by European summit.

Improved usage in edible oils due to the festival has encouraged the crushers and millers to buy seed to meet the oil demand. Arrivals were declined sharply in major mandis throughout India ahead of Diwali festivals. Most of the Mandis were remain closed.

As per USDA’s weekly export inspections came in at 41.15 million bushels which was in line with trade expectations and compares with an average of 27.8 million necessary each week to reach the USDA projection. For the weekly crop update, traders see harvest near 80- 85% complete as compared with 69% last week. With better weather in Brazil, some analysts are increasing their production outlook to a record high above 75 million tonnes from 74.3 million this past season.

As per USDA’s weekly export sales report which released on Friday, which shows that the export sales for soybeans came in at 672,400 metric tonnes which was near the low end of expectations. According to the latest WASDE report, global oilseed production for 2011/12 is projected at 453.0 million tons, up 1.5 million tons from last month.

Production increases for soybeans, rapeseed, sunflower seed, and cottonseed are only partly offset by lower peanut production. Average yield of US soybean declined to 41.5 bushels per acre from 41.8 last month and trade expectations was about 42 bushels per acre.

Mustard Seed

NCDEX November RM Seed futures traded higher in the morning hours due to improved demand from millers as improved demand of vegetable oil ahead of festivals and finally ended in red on account of profit taking after continuous rise in the last 4-5 trading sessions.

Refine Soy Oil

NCDEX November Refined Soy oil futures ended higher as improved demand in physical market ahead of festivals. Strength in US dollar again INR also provided support to the vegetable oil prices. Imports of vegetable oil will be costly due to depreciation of Indian Rupee against US $ as India imports about 50% of vegetable oil of total consumption.

Indonesian government lowers the crude palm oil export tax by 1.5% to 15% for November month as compared to last month due to declining global prices during the last couple of months meanwhile Malaysian and Indonesian Govt. agree to review crude palm oil tax in near term.

Malaysian Palm Oil Exports

As per SGS (another Cargo surveyor), Malaysia’s palm oil exports in first 15 days of October 1-20 increased to 1,033,454 tonnes, up 6.8% as compared to previous month of 967,859 during the same period.