Soybean trades up on global cues

NCDEX March soybean futures ended in negative territory tracking the weakness in the international markets. Government measures to curb the rising Pulses and edible oil imports to control inflation were also seen pressurizing Oil and Oilseed prices on Monday.
The domestic production of edible oil meets only about 50 per cent demand. The gap in supply is met through imports, which are often at high prices due to the quantum of our requirement.
Argentina’s soybean crop, the world’s largest producer, may be 4% higher than last week’s forecast at 48.8 million tonnes.
USDA’s Weekly Export Sales: USDA’s weekly export sales released on Friday, which shows that the weekly export sales for soybeans came below trade expectations at just 134,600 tonnes for the current marketing year and 118,000 for the next marketing year. Old crop sales of 151,000 metric tonnes are needed each week to reach the USDA forecast. Old crop meal sales came in at 108,300 metric tonnes as compared with 86,000 tonnes needed each week to reach the USDA forecast.
Arrivals: Daily arrivals of soybean in Madhya Pradesh were at 40,000 bags yesterday and around 2500 bags in Indore Mandi.
Mustard Seed
NCDEX April RM Seed futures closed lower on commencement of fresh arrivals. Also, higher production estimates of RM Seed this year is seen pressurizing the prices. Daily arrivals of RM seeds in Rajasthan were at 70000 bags on Monday, 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 by 1.95% on Monday as the finance ministry, in the Union Budget 2011-12, took some measures to keep a check on imports of edible oil.
Governemnt proposed an amount of Rs 300 crore to bring 60,000 hectares under oil palm plantation. The initiative will yield about 3 lakh metric tonnes of palm oil annually in 5 years. However, the measure would not have any significant impact on oil prices as our imports of palm oil stands at around 51 lakh tonnes every year.
Malaysian Palm Oil Production & Exports:
As per Intertek Agri Services (a cargo surveyor), exports of Malaysian palm oil during the February 1-25 fell 8.2 percent from 973,441 tonnes as compared to the same period in the last month.
Outlook:
Oil and Oilseed complex in the intraday are expected to decline tracking the weakness in the international markets owing to new crop arrivals in Brazil and Argentina.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-trades-up-on-global-cues-22237.html)