Soybean & Rapeseed have been moving sluggishly over the past month aided by the new season crop. However over past week, report of fresh orders from China supported the price. Delay in planting of soy crop in Argentina due to dry weather condition also gave underlying support to the market. International oil and oilseeds market is likely to extend its bullish trend on strong fundamental factors. Emerging export demand for US soybeans and tight global supply situation is likely to keep the price higher in the week ahead. According to USDA, US has exported 1.3 million tons of soybeans (during Nov 19-25), up 99% from previous week and 32% higher from previous 4-week average. Back home, Indian traders are expecting fresh soybean & rapeseed meal export orders from South East Asian countries this month. According to the Solvent Extractors Association of India, soy meal shipment rose 44% Y/Y to 1,248,387 tons. Spot markets are witnessing a steady supply and crushers are actively buying from the physical markets helped by the crush margin which has been maintaining its positive trend since last couple of week. Rapeseed meal has also been helped by rising oil prices catering to domestic demand. On the other hand, Indian soy meal export price is quoting at discount to Brazil and Argentina, hence, may attract fresh export orders also. COOIT has estimated soy meal export from the country in 2010-11 would be 3.4 million tons against 2.4 million tons in last year. All things point north. |
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