Soybean market has been sluggish over the past week or so following the weak international markets. This is on back of the USDA Supply Demand report which projected the higher carry forward stocks and the revealed the lower export demand. The drop in the Chinese demand was the factor behind the lower export projections. The record projections of the crop from the Brazil and Argentina further added bearishness to the international markets. The Argentina crop is projected at 53 million tons, up 3.5 million from 2010/11 crop based on a higher harvested area and yields. The Brazil soybean crop is projected at 72.5 million tons, down 0.5 million from the projected record 2010/11 crop. Also the decline in the prices of the international corn affected the market sentiments of the soybean and prompted the fall in prices. The Indian markets reacted in suit to the World supply demand forecast reports. In beginning of May the oilseeds market were quite firm on the back of strong April export numbers. India April soymeal exports 305,033 mt vs 60,264 mt year ago. However the domestic market sentiments are very weak now after the USDA reports and is witnessing decreased arrivals and bleak buying for both soybean & rapeseed. The crush margin is also very nominal which is preventing the buyers across the spot markets. The decline in the demand for the meal from the South East Asian countries is exerting pressure on the prices of the bean. Going forward oilseed complex are expected to trade lower due to weak global market sentiments as concern of palm oil supply and subdued demand in physical market. |
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