Soybean market sentiments remained volatile throughout February as initially market observed upside movement due to continued demand while later on due to too high prices, market witnessed corection. Further, geo-political tension in the Middle East and Africa compelled international markets to witness sharp correction. Indian markets which were trading at very high levels experienced heavy selling pressure and resulted in significant correction during February month. The export demand from US also slowed down on the expectation of start of new crop from the Latin American countries. It is to be learnt that Brazil and Argentina are likely to start harvesting very soon. Thus supply situation at the international markets are expected to improve during March. China which is a biggest buyer of soybean may shift towards these countries resulting in some pressure on CBOT soybean prices. In our domestic markets, crushing is going on at full speed. Further, the country has made significant progress in the soy meal export. The overall export of oilmeals for April 2010 to January 2011 ( 10 months ) is reported at 3,788,472 tons compared to 2,670,932 tons i.e. up by 42%. Last year, during Nov.,09 to Feb., 2010, export of oilmeals was dropped heavily due to disparity in domestic market. However, this year, during last four months, due to recovery in soybean meal export coupled with good crush margin and better oil prices boosted the export. The improved soy meal export will continue to attract fresh soybean buying in the market. Thus buying on dips appears a better strategy from medium term point of view. |
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