Soybean Trades Higher on Fresh Buying

Soybean futures traded higher on second consecutive trading session on account of lower production estimates of oilseeds and some fresh buying was witnessed as lower levels as a value buying.

On Friday, analytical firm Informa Economics cut its forecast for Argentina's 2011/12 soybean production to 46.5 million tonnes from 51 million.

It lowered its forecast of Brazil's soybean crop to 70 million tonnes, from 72 million previously.Brazil produced a record 75.3 million tonnes of soybeans last season and is expected to harvest 71.5 million tonnes this year, according to its agriculture ministry.

The Buenos Aires Grains Exchange estimated Argentina's soy production would fall to 46.2 million tonnes this year from 49.2 million in 2010/11. Arrivals of soybean in Madhya Pradesh declined to 85,000 bags, Maharashtra 60,000 bags and Rajasthan 30,000 bags (1 bag=100 kg) on Monday. In Indore Mandi (auction), soybean quoted Rs 2,350-2,410 per 100 kg on Monday, up around Rs 20 /100 kg from Friday.

For plant delivery, soybean prices were quoted at Rs 2,450-2,480 per 100 Kg, up around Rs 20/100 Kg as compared to Friday. According to Ministry of Agriculture, as on February 03, 2012, total oilseeds output is likely to fall 6% to 30.53 million tonnes in the current crop as compared to last year (32.48) in corresponding period and soybean output may fall 5.2% on year at 12.08 million tonnes for 2011-12 as compared to 12.74 million tonnes last year.

Groundnut 6.94 million tonnes vs 8.27 million tonnes, sunflower 0.56 mln tons vs 0.65 mln tons, Safflower 0.10 mln tons vs 0.15 mln tons, sesamum 0.77 mln tons vs 0.89 mln tons and Castor Seed 2.34 million tons vs 1.35 mln tons.

Oilseeds output is down as sowing of the crops were hit due to poor rains in key growing areas. Farmers also shifted to cotton, which had given them better returns last year.