After two-day slide, soyabean futures bounce back

After a sharp correction of 7.4% witnessed over past two days on reports of swine flu outbreak in Mexico and US, soyabean May futures on the National Commodity & Derivatives Exchange (NCDEX) once again bounced back on Tuesday. The market has discounted the news of swine flu and prices regained mainly on concerns over Argentina’s harvest and strong demand from China.
Soyabean May contracts rose to Rs 2,600 level on Tuesday after touching a low of Rs 2,594 per quintal. Earlier, the contract rose to Rs 2,800 per quintal, up by almost 20% in April month. Spot prices in Indore market also gained Rs 2 at Rs 2607 per quintal on Tuesday.
On Monday, NCDEX May soyabean futures hit lower limit of 4% in tandem with overseas market on fear of lower demand of soy meal, feed demand in near future due to outbreak of swine flu in Mexico.
A 10% special margin, which was levied on long side on all soyabean contracts, also weighed on the markets. Swine flu outbreak will impact on meat and livestock feed demand, a local trader said.
The World Health Organization has raised its six-stage pandemic alert level to 4 from 3 because of evidence of increased human-to-human contact, as swine flu is spreading across North America. Hog and pork-belly futures plunged 3 cents a pound.
“Soyabean prices are expected to rise in near term on due to concerns over Argentina’s harvest and strong demand from China,” an analyst with Angel Commodities said.
For medium term and long term, it is bullish on account of lower global soybean production estimates to 218.8 million tonnes. And higher export demand of Indian soyameal is expected from Asian and Middle East countries in coming year owing tight supply in global market, he said.
“We feel the fall in prices could be limited. Market sentiments could take it down further but now the shorts if any needs to be covered. The undertone for the commodity looks fairly bullish and this fall has opened an opportunity to go long,” analyst with Kotak Commodities said.
China is likely to import 3.83 million tonnes of soybean in April and 3.18 million tonnes in May according to Chinese government estimates issued last week. (source: fianancial express)

Castor crop to touch record 11L tonne

Mumbai: The country may witness the record highest castorseed crop at 11 lakh tonne for the 2008-09 season, according to a latest survey conducted by the Solvent Extractors’ Association of India (SEAI).
The total area under castor crop in the country is expected ro be at 8.26 lakh hectare to record an increase of 10% as compared to the previous year. Thus, estimated total production has been estimated at 11 lakh tone, up by 21% as compared to the previous year.
“This is the highest production recorded. Average yield for the year 2008-09 is 1,331 kg per hectare as against 1,216 kg per hectare during 2007-08. It has increased by 9% as compared to previous year,” BV Mehta, executive director, SEAI, said. The association is a broad-based all-India apex body of the solvent extraction industry and practically all working solvent extraction units are its members.
In Gujarat, the total area under castor for the season 2008-09 is expected at 4.51 lakh hectare, up by 27% as compared to the previous year. Area under castor crop increased in north Gujarat (22%) and Saurashtra (25%). Estimated total production for the state is 8.27 lakh tonne, an increased by 27% over previous year. Average yield for the year 2008-09 is 1,834 kg per hectare as against 1,838 kg perhectare for 2007-08.
In Rajasthan, total area for 2008-09 has been estimated at 1.28 lakh hectare, up by 8% as compared to previous year. Estimated production for 2008-09 is at 1.59 lakh tonne, up 12% over the previous year. Average yield for the year 2008-09 is 1,248 kg per hectare, which is 3% higher than the previous year.
In Andhra Pradesh, the total area for 2008-09 is estimated at 1.92 lakh hectare, down by 18% over the previous year. Area under castor crop has decreased at all districts in Andhra Pradesh this year except Kurnool. Estimated production for 2008-09 is at 0.71 lakh tonnes. It has decreased by 15% over the previous year. Average yield for the year 2008-09 is 369 kg per hectare, which is 3% higher than that of previous year.
The SEA Castorseed Oil Promotion Council, an arm of the SEAI, has been undertaking scientific assessment of the castor crop and dissemination this information to trade and industry for the past 4 years. Keen on estimating the crop for castor seeds in Gujarat, Rajasthan and Andhra Pradesh, the body commissioned Nielsen India to conduct a crop estimation study for castor in Gujarat, Rajasthan and Andhra Pradesh. (Source: Financial Express)