Soybean rise Fri on improved demand, US supply concerns
By Dimple Chauhan
MUMBAI, FEB 13 (TickerNews Service): Soybean rose at the closing of trades Friday on improvement in demand in international market and on supply worries after United States Department of Agriculture (USDA) trimmed US soybean production, said analysts.
"Prices of the bean rose on improvement in demand indicated by robust US bean export numbers and on lower supply worries from US and Brazil," said Faiyaz Hudani an analyst with Kotak Commodities.
Soybean prices were supported on USDA said private shippers sold 745,400 tons of soybeans for the 2014-2015 season, beating analysts' expectations and coming in 52% higher than the previous week and 29% higher than the prior four-week average.
Prices of the bean were also supported USDA decreased 2014-15 United States soybean production forecast indicating tight supply in the world's biggest bean producer.
The USDA trimmed US, the world's biggest bean grower, 2014-15 production estimates to 108 million tons unchanged from the previous estimates and 91.4 million tons a year ago.
USDA also decreased forecast for 2014-15 US soybean ending stockpiles to 385 million bushels compared to 410 million bushels in the previous month and 92 million bushels a year ago.
Brazil, the world's second biggest soybean producer, 2014-15 output may fall to 94.5 million tons compared to 95.5 million tons a month ago and 86.7 million tons a year ago, the USDA said.
Soybean for April delivery rose 0.53% to Rs 3,392 per quintal on the National Commodity & Derivative Exchange (NCDEX).
Spot soybean prices were up 0.47% to Rs 3,385 per quintal on the NCDEX.
Crude palm oil dropped at the closing of trades Friday on taking cues from international market on subdued demand following weak Malaysia export data, said analysts.
Malaysia palm oil exports in Feb 1-10 fell 16% from a month earlier on weak demand from China, India, and Middle East while output of the edible oil fell 15% in January end due to floods, DowJones reported.
Malaysia palm oil exports dropped to 298,910 tons in Feb 1-10 compared to 355,846 tons for the same period a month ago, Dow Jones reported citing data from Intertek a private surveyor showed today.
CPO for February delivery slipped 0.64% to Rs 452.80 per 10 kilograms on the multi-commodity exchange (MCX).
CPO spot prices rose 0.37% at Rs 451 per 10 kg on the MCX.
Prices of the soyoil posted gain for the second straight trading session at the closing of trades Friday on speculation that government may hike imports duty on edible oil, said analysts.
Last week, industry sought further increment in import duty on crude and refined oil to safeguard the interest of oilseed farmers by ensuring remunerative prices following higher imports, said Solvent Extractors' Association (SEA) of India in press release.
"As a remedy to the current situation, we would once again like to strongly appeal to the Union Government to immediately increase import duty on crude vegetable prices," said B V Mehta Executive Director SEA of India.
The industry is demanding the government to raise import duty on crude vegetable oils to 10% from 7.5% and on refined oil to 25% from 15% to support the inertest of the farmer.
Meanwhile, India soybean oil imports jumped 28.80% in January after local demand of edible oils rose due to lack of domestic crushing, data release from the Solvent Extractors Association (SEA) of India showed.
India's soyoil imports jumped to 224,430 tons in January compared to 174,236 tons for the same period a year ago, data released by the SEA of India showed.
Soyoil for April delivery rose 0.59% to Rs 598.30 per 10 kilograms on the NCDEX.
Spot soyoil prices jumped 0.04% to Rs 620.25 per 10 kilograms on the NCDEX.
RM seed posted gain for a second straight trading session Friday on weak sowing data, indicating supply worries, said analysts.
Oilseeds acreage was down at 6.51 million hectare as against 7.02 million hectare as farmers planted less mustard seed due to moisture stress in Rajasthan and Madhya Pradesh, two major mustard producing states.
Late and lower monsoon rains of 2014 hit the sowing operations as there was moisture stress, said the official.
RM seed for April delivery rose 1.03% to Rs 3,345 per quintal on the NCDEX.
Spot RM seed prices jumped 0.86% to Rs 3,503.40 per quintal on the NCDEX.