SOYBEAN
Spot soybean in the domestic market continued its upward trend during the week ending 22nd April and increased by nearly 2 percent to trade at Rs 3,100/100kg in benchmark Indore market on lower sales by the farmers.
Amid the bullish sentiment, processors concluded deals cautiously keeping a close watch on the price as the premium price quoted by sellers was not viable for them from crushing perspective, awaiting downward correction to make their purchases. Need based processors did not have any option but to purchase at a higher rate although volumes were lean.
Monthly demand of soybean for crushing is around 8 lakh tonnes and the current stock with the crushers is at 5 lakh tonnes, which means the crushers will have to procure 3 lakh tonnes more from the market yards to fulfil the current capacity. Therefore, in the given situation of lower arrivals in the local markets, crushers increased the buying prices for soybean on daily basis so that farmers are attracted to sell.
Farmers in the local markets are likely to hold soybean seeds till May 2017 in anticipation of better prices from the crushers or buyers. Soybean arrivals in the country during the week averaged at 1.25 lakh bags(90kg) against 1.50 on previous week.
In futures market, Soybean most active May contract was down by 2.16 percent at Rs 3,065/100kg while forward June contract was up by 2.30 percent at Rs 3,134/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX).
SOYMEAL
Soymeal during the week gained by Rs 600 to trade at Rs 25,500 per tonne, to minimise the negative crush margins. Original demand from the feed manufactures have been very low as poultry farms are currently running in losses and exports are also not as per expectation.
Indian origin Soymeal is trading at USD 415 per tonne FAS Kandla, a premium of USD 50 to its counterpart Argentine origin at USD 365 per tonne CIF Rotterdam on account of Rupee appreciation.
NEXT WEEK: Outlook of soybean complex bullish due to slow farmer selling
(By Commoditiescontrol Bureau; +91-22-40015516)
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