Indian Soy Complex To Trade Range Bound - Weekly 2nd June

MUMBAI (Commodities Control) -

SOYBEAN:


Soybean traded steady in the spot markets across the country amid limited trade activity and fresh buying from crushers.

Arrivals during the week, were reported to be lower at 0.35 to 1.10 lakh bags on farmer’s reluctance to sell at prevailing levels and anticipating better prices at Rs 3,000/100 kgs for the crop.

Soybean prices last traded at Rs 2,775-2,870/100 Kg in benchmark Indore market of Madhya Pradesh against Rs 2,775-2,875 a week ago.

In futures market, Soybean most active June contract during the week was down by 2.91 percent at Rs 2,666/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX).

Soybean futures price are trading below MSP of Rs 2,700/100kg so there are chances that short term rally can be witnessed. On 2nd June, soybean futures marked a fresh five-month low of Rs 2,652/100kg on account of selling pressure by traders following subdued cues of spot market.

SOYMEAL

Soymeal prices in the local markets gained by Rs 100 to trade at Rs 22,700 per tonne amid marginally improved buying by poultry feed manufacturers in week ending 2nd June.

Price of broiler chicken has declined by Rs 10 to trade at Rs 98/kg at benchmark Delhi market in week ending 2nd June on account of poor demand.

The competitiveness of Indian soymeal in the world market has deteriorated. The premium of Indian export prices versus Argentine origin widened to USD 25-30 per tonne from 20-25 compared to month ago so most of the market participant are expecting that India will receive less export orders in coming days.

SOY OIL

A weak trend followed in refined soy oil in benchmark Indore market of Madhya Pradesh on account of poor demand at higher level. Soy oil at benchmark Indore market declined by Rs 10 to trade at Rs 620/10kg. Refined soy oil prices will also get support in near-term as rival mustard oil Kacchi Ghani is trading at a premium of Rs 8/Kg versus soy oil.

Indian Government increased the tariff value of Soy Oil on May 31 for the first half of June by USD 18 to USD 811 per tonne so the import of commodity has become costlier. In futures market, refined soy oil prices most active June contract on NCDEX was trading 0.90 percent up at Rs 621/10kg.

Soy oil prices were lower by USD 55 to trade at 788 per tonne in dollar terms (CNF) at Kandla port and also declined by Rs 5 to trade at Rs 580/10kg.

In futures market, soy oil most active June contract on the National Commodity & Derivatives Exchange Ltd (NCDEX) ends flat at Rs 617.30/10kg.

NEXT WEEK:

Indian soybean is likely to trade range bound next week as poor demand at higher level will weigh on soybean prices whereas slow farmer selling will provide support to soybean at lower level.


(By Commodities control Bureau; +91-22-40015523)