Domestic oilseed complex rebounded from the prior losses on fresh buying. Moreover, waning sowing progress of major kharif oilseeds also prompted some buying in oil seed market. As per latest data release by government , the area under major kharif oilseed has declined by almost 31% to 1.72 lakh hectares as on 14th June 2012 due to poor sowing of soyabean and castorseed.
The U. S Soya complex ended the Friday's session with mixed note. The CBOT August Soybeans finished the last day down 5 1/4 at 1358 ½ cents per bushel, 16 1/2 off the high and 7 up from the low. August Soybean Oil finished up 0.62 at 48.8 cents per pound, 0.19 off the high and 0.85 up from the low. Outside markets were mostly supportive but there are still significant concerns for outside market weakness on Monday. Some models are wet (one inch plus over Illinois and Indiana next week) while others remain drier and warmer than recent expectations but there seems to be a sense that rains could be fairly decent next week across the dry areas of the eastern Corn Belt. Some areas are in desperate need of rains as many fields in the east have seen little or no rain in the past week. On top of the US weather situation, the market remains nervous with the euro zone situation and talk of extremely high temperatures near 105 degrees for the Black Sea region and a hot and dry outlook for the northern China plains growing region. Other areas of China have been hit with flooding but this growing region continues to miss out on bulk of rains. Private exporters reported the following three transactions. China bought 262,000 tonnes of US soybeans for 2012/13 season. Unknown destination bought 120,000 tonnes of US soybeans for the 2011/12 season and China cancelled 147,000 tonnes of soybeans for the 2011/12 season. A prominent research firm revised their soybean planted acreage estimate up to 76 million acres as compared with 73.9 million by the USDA. Traders have been expecting a 1.5-2.0 million acre increase so the news was seen as a negative factor. The NCDEX RSO July contract ended the last day down by 0.07% at Rs 715.50 after hitting the high at Rs 720.65 per 10 kg. In today's early trading session, the July contract currently quotes at Rs 720.10, up Rs 5 or 0.70% over the last day close. Technically, the counter is likely to find resistance at Rs 723, Rs 725 and support is at Rs 717, Rs 713.50 per 10 kg.The July Soybean contract quotes at Rs 3438, up Rs 14.50 or 0.42% over the last day close and the open interest added 1.29%.
Powered by Commodity Insights