MUMBAI (Commoditiescontrol) -
International Market Recap
US soybean futures moved lower for the week ended June 1 on worries about global trade tensions.
Tensions have again heated up as US President Donald Trump unexpectedly toughened his trade stance this week. He called for tariffs on USD 50 billion of imports from China unless it addressed the issue of theft of American intellectual property.
The most-active July contract on the Chicago Board Of Trade (CBOT) ended the week at USD 10.21-1/4 per bushel as against USD 10.41 1/2 a bushel on last Friday. While Jul 18 soybean meal closed at USD 374.20 and Jul 18 soybean oil at USD 31.19, compared to USD 380.30 and USD 31.34, respectively.
Domestic Market Recap
A weak trend was witnessed in soy complex at major markets in the country during the week due to lacklustre demand.
Spot soybean ended the week at Rs 3,400-3,600/100kg, compared to 3,550-3,775/100kg at the benchmark Indore market, while refined soy oil ruled lower by Rs 13 at Rs 750/10kg. Similarly, soybean meal softened by Rs 500 to Rs 29,500 per tonne.
Soybean plant rate in Madhya Pradesh today stood at Rs 3,425-3,600/100kg versus Rs 3,675-3,825, while it was at Rs 3,450-3,650 versus Rs 3,700-3,875 in Maharashtra.
Export demand is said to be poor due to disparity in the international market. Indian soybean CNF Rotterdam tentatively priced at USD 487 per tonne, while Argentine origin was at USD 433, thus making Indian soybean costlier by USD 54.
Crushers demand for soybean is sluggish also due to heavy disparity of Rs 577 per tonne. Crushers are hesitant to make bulk purchases as early arrival of monsoon has raised good crop prospect.
According to trade sources, there is higher possibility of increase in acreage under soybean this season. Indian weather bureau has forecast good monsoon in July as well as in August, which will boost the soybean yield, they said.
Soybean may trade subdued in the near term due to slow sales in soymeal and downtrend in soy oil followed by expectations of rise in acreage this season.
On futures, Soybean June contract was down Rs 171 at Rs 3,567/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX).
(By Commoditiescontrol Bureau)
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