Soybean Rises on Global Cues

NCDEX November Soybean futures ended higher on improved demand from solvent extractors and stockiest at prevailing prices, despite huge arrivals in major mandis. Improved usage in edible oils due to the festival has encouraged the crushers and millers to buy seed to meet the oil demand. Arrivals of soybean were 5 lakhs bags in Madhya Pradesh on Friday, 3.25 lakhs in Maharashtra and 2.50 lakhs bags in Rajasthan.

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. Meal sales came in at 226,100 which were higher than expected. 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. Soybean production is projected higher for the United States and India. U.S. oilseed production for 2011/12 is projected at 92.4 million tons, up 0.7 million from last month. India's soybean production is raised 0.7 million tons to a record 10.5 million due to higher planted area.

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 due to improved demand from millers as improved demand of vegetable oil ahead of festivals. According to the latest WASDE report, Canola production for Canada is increased 0.6 million tons to a record 13.2 million based on higher area and yield reported in the most recent report from Statistics Canada. Harvested area is projected record high despite excessive rainfall and flooding in parts of Saskatchewan and Manitoba that prevented some area from being planted.

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.