Soybean weakens tracking weak global market

NCDEX March futures traded lower in line of weak overseas market. Vietnam has rejected Indian cargoes containing thousands of metric tons of corn and soymeal due to presence of pests, which has also provided support to the bears.
Two cargoes, one containing around 21,000 tons corn and the other with a combined 20,500 tons corn and soymeal were rejected on Tuesday at Ho Chi Minh city port, said an executive at a global agricultural trading company.
Already there was poor profit margin in the export of soymeal and aftere this incidents exporters may huge losses.
Oil Meal Exports: As per Solvent Extractors Association of India, India’s oil meal export in the first 10 months of the current fiscal (April 2010 to January 2011) rose to 37.88 lakh tonnes, an increase of 42% from 26.71 lakh tonnes in the same period last year. India's oilmeal exports rose on good demand from buyers in Japan, Vietnam, South Korea and the European Union.
Mustard Seed
NCDEX April RM seed futures ended in red on weakness in other oilseeds and huge losses in edible oils.
Higher production estimates of RM Seeds as compared to last year due to higher sowing acreage amid favorable weather also added bearish market sentiments. Arrivals at major mandis were reported at 50,000 bags as compared to previous day of 45,000 bags (bag=85 kg).
Area and Production: As per Solvent Extractors' Association of India, India's rapeseed output in the current marketing year is likely to rise about 16% because of higher area under cultivation.
The country is likely to produce 6.85 million metric tons of rapeseed in the marketing year ending Sept. 30, compared with 5.92 million tons last year.
Total area under the winter-sown oilseed crop is estimated to rise to 7.25 million hectares from 6.53 million hectares, the trade body said in a statement.
Output in Rajasthan, the country's largest producer of rapeseed, is likely to increase 29% to 3.48 million tons. Uttar Pradesh, another major producer, is likely to produce 6% more rapeseed in 2010-11. Exports: India’s rapeseed meal exports in the month of January 2011 stood at 42,409 tonnes (down 47 %) as compared to 79,961 million tonnes in the month of January 2010.
However, India’s RM seed meal export in the first 10 months of the current fiscal (April 2010 to January 2011) declined to 6.60 lakh tonnes, down 2% from 6.72 lakh tonnes in the same period last year.
Refined Soy oil
March Refined soy oil futures closed down 0.76 per cent as compared to previous day’s close, tracking weak overseas market and appreciation on INR against US dollar also added bearish market sentiments. Import of edible oils will be cheaper due to strong Indian rupee against US dollar.
Malaysian Palm Oil Exports:
As per Intertek Testing Services (a cargo surveyor), exports of Malaysian palm oil products for the month of January fell 3.6 percent to 1.24 million tonnes from 1.29 million tonnes shipped during December 2010.
Outlook:
Soybean prices are expected to trade slightly lower on account of strong INR against US dollar.
Courtesy: Angel Commodities

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-weakens-tracking-weak-global-market-21792.html)