Soybean plunges on global cues

NCDEX March soybean futures fell sharply on account of weak overseas market as forecasts of record high soybean production in Brazil and forecast of higher sowing acreage in USA for this season as compared to last year also in favoured to the bears. Daily arrivals of soybean in Madhya Pradesh were at 40,000 bags yesterday as compared to previous day of 55,000 bags.
USDA’s Weekly Export Sales Report: As per latest USDA’s weekly export sales report, which is released on Thursday, the export sales of soybean came at 20,800 metric tonnes for the current marketing year and 950,300 for the next marketing year for a total of 971,100 metric tonnes. Meal sales came in at 182,700 metric tonnes which was a bit higher than expected. Net oil sales came in at a whopping 38,400 metric tones which was more than twice expectations.
Mustard Seed
NCDEX April RM seed futures traded in the morning hours on account of weakness in other oilseeds and edible oils. However, found strong support at Rs 2981/qtl and an hour before closing the market prices recovered slightly and finally closed Rs 3015/qtl with a gains of Rs 8/qtl as compared to previous day’s close. Arrivals at major mandis were reported at 70,000 to 75,000 bags on yesterday as compared to previous day of 50, 000 bags (bag=85 kg).
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 lower on weak overseas market as well as lower demand in physical market at prevailing prices. Due to expiry date as on February 15, 2011 at National Board Of Trade (NBOT), Indore also added selling presuure at NCDEX/MCX bourses. Forecast of lower export sales figure (down about 10%) in first of this month. Cargo surveyor Intertek Testing Services will issue February 1-15 palm oil exports from Malaysia on Tuesday.
India's vegetable oil imports fell 17.3 percent to 721,197 tonnes in January 2011 on high global prices and increased domestic oilseeds crushing. India imported 691,780 tonnes of edible oils and 29,417 tonnes of non-edible oils in January 2011, According to the Solvent Extractors' Association of India.
Malaysian Palm Oil Production & Exports:
As per Intertek Testing Services (a cargo surveyor), exports of Malaysian palm oil during the February 1-10 rose 45.7 percent from 437,479 tonnes shipped during the same period in the last month. However, As per SGS (a cargo surveyor), exports of Malaysian palm oil during the February 1-10 rose 28.5 percent from 426,163 tonnes shipped during the same period in the last month..
Outlook:
Refined soybean oil prices are expected to trade slightly lower at prevailing prices.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-plunges-on-global-cues-21960.html)