Soybean tumbles on sluggish demand

NCDEX April soybean futures ended red on lower demand of soybean in physical market at weekend. Traders are are waiting of USDA’s planting intentions report will release on March 31, 2011. A private forecast for soybean planted area to come in at 75.269 million acres was seen as supportive as the latest USDA Outlook Forum estimates called for soybean planted area at 78 million acres as compared with 77.4 million last year. While the USDA outlook forum supply/demand outlook showed ending stocks for the 2011/12 season at 160 million bushels, if plantings are only 75.3 million acres, ending stocks would slip to just 49 million bushels.
USDA’s Weekly Export sales Report: USDA’s weekly export sales report released on March 24, 2011, which shows that the net weekly export sales for soybean came in at 264,700 metric tonnes, which was near the low end of expectations. Meal sales came in at 211,100 tonnes, which was above trade expectations. Sales of 79,000 metric tonnes are needed each week to reach the USDA forecast.
Mustard Seed
NCDEX April RM Seed futures ended slightly lower due to weaknbess in other seeds. Higher production estimates of Rabi oilseeds and fresh arrivals of RM seed also provided support to bears.
Arrivals in Major mandis throughout India were 3.5 lakh bags. Total Rabi area under Oilseeds, is reported higher at 99.24 lakh hectare (lh) against 95.83 lh in previous season as on 11 Mar 2011. India’s RM seed production estimates were at 71 lakh tonnes as on March 13, 2011 for this year. Rajasthan- 35 lakh tonnes, UP- 9 lakh tonnes, Haryana/Punjab- 7.7 lakh tonnes, and M.P./Chhatisgarh -7.5 lakh tones.
Refined Soy oil
NCDEX April Refined soy oil futures traded with mixed sentiments amid subdued trading activity on Saturday on lack of fresh fundamentals.
India’s vegetable oil imports may come down by nearly 6% to 87-88 lakh tonnes in 2011 till ending October (Oil marketing year November to October). There is news that, Indonesia plans to cut its palm oil export tax for April to 22.5% from the current 25%. As per Oil World, World production of palm oil may increase 6.6 percent to 48.7 million tons in 2011.
Malaysian Palm Oil Exports:
As per Intertek Testing Services (a cargo surveyor), exports of Malaysian palm oil during the March 1-25 fell 3.7 percent to 937,591 as compared to the same period in the last month of 973,441 tonnes. News: As per Indonesia’s palm oil producer Association (Gapki), Indonesia’s CPO estimate is 22.5 million tonnes for 2011.
Outlook:
Oilseeds complex are expected to trade rangebound amid subdued trading activity on lack of fresh fundamentals.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-tumbles-on-sluggish-demand-22827.html)