Saturday, March 5, 2011

soybean futures gains on short covering

soybean futures gains on short covering : NCDEX March soybean futures closed slightly higher on short covering after sharp fall in previous trading sessions. Lower stock of soybean in the domestic markets also added to the bullish market sentiments.

There are reports that India is likely to export 2.5-3 lakh tonnes (lt) of soy meal in the month of March and around 1.5lt in April. Demand for soymeal from the overseas buyers has also declined as major soymeal buyers are placing their orders at competitive destinations such as Latin America where fresh crop arrivals have commenced.

USDA’s Weekly Export Sales report released on Thursday 03, 2011 shows that export sales for soybeans stood at 361,700 metric tonnes for the current marketing year and 283,600 for the next marketing year for a total of 645,300 metric tonnes was well above trade expectations.

Meal sales came in at 149,600 tonnes. Oil sales came in at 16,000 metric tonnes.

Arrivals: Daily arrivals of soybean in Madhya Pradesh were at 40,000 bags yesterday and around 2500 bags in Indore Mandi.

Mustard Seed

NCDEX April RM Seed futures closed marginally higher on Friday due to short coverings. However, the trend is still bearish owing to commencement of fresh arrivals. Also, higher production estimates of RM Seed this year may pressurize the prices. Daily arrivals of RM seeds in Rajasthan were at 80000 bags on Thursday as compared to 70000 bags on Tuesday,

Production:

As per Ministry of Agriculture, GOI, India’s RM Seed production estimates at 74 lakh tonnes for 2011, up 12% as compared to 66 lakh tonnes in the last year. However, India Rabi oilseeds production estimates for 2011 is 96 lakh tonnes, up 5.5% as compared to 91 lakh tonnes last year.

Refined Soy oil

NCDEX March Refined soy oil futures closed higher on account of short covering after sharp fall in previous trading session. Higher prices of CPO futures at Bursa Malaysia Derivative Exchange, Malaysia also provided support to the bulls.

Government proposed an amount of Rs 300 crore to bring 60,000 hectares under oil palm plantation. The initiative will yield about 3 lakh metric tonnes of palm oil annually in 5 years. However, the measure would not have any significant impact on oil prices as our imports of palm oil stands at around 51 lakh tonnes every year.

Malaysian Palm Oil Production & Exports:
As per Intertek Agri Services (a cargo surveyor), exports of Malaysian palm oil during the February 1-25 fell 8.2 percent from 973,441 tonnes as compared to the same period in the last month.

Outlook:

Oil and Oilseed complex in the intraday are expected to trade higher on account of firm overseas market.
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