Despite the positive close in the US soybean market, local oilseeds extended the last session losses on long liquidations on the reports of better oilseeds sowing. According to the latest information received from sate, Indian Kharif oilseeds sowing are up nearly 9 Lakh ha to 160.77 Lakh ha as on 17th August 2012. NCDEX RSO September delivery ended the last day down by Rs 5 at Rs 791.50 per 10 kg. The counter slumped to the low of Rs 789.10 and is trading at Rs 790.60, down Rs 0.8 per 10 kg. Nearly Rs 7 per 10kg dropped in the last two session, prices are likely to recover today before the close of the shortened trading session as some position covering expected ahead of Monday's holiday for Indian market. Technically, the counter is likely to find next support at Rs 789, Rs 787 while resistance is at Rs 792.50, Rs 794.20 per 10 kg. Moreover, positive close at US market and strong CPO close at BMD on Friday' is also likely to support the recovery in the local oilseeds prices.
The US November Soybeans finished the Friday's session up 20 1/2 at 1645 ¾ cents per bushel, 1 3/4 off the high and 25 1/4 up from the low. January Soybeans closed up 22 1/4 at 1637 cents per bushel. This was 27 1/4 up from the low and 1 off the high. December Soy meal closed up 10.3 at 499.9 cents per short tone. This was 11.6 up from the low and 0.3 off the high. December Soybean Oil finished up 0.08 at 53.74 cents per pound, 0.16 off the high and 0.23 up from the low. Soybean basis along the Mississippi River and in the Gulf of Mexico were steady to firmer. Slow country movement and steady export demand for soybeans and soybean meal offered support to futures. Soybean basis rose 15 cents per bushels in Burns Harbor, Indiana as commercial traders attempt to force better movement of soybeans in the cash market. Despite the firm basis and futures, US crush margins remain positive as demand for soybean meal surges. The firmer trade in futures was offset by a slightly better weather forecast next week. Good rainfall and cooler conditions in the northern, eastern, and parts of the central Midwest have stabilized yields for portions of the soybean crop but 25-35% of the Corn Belt will remain stressed. Argentina soy prices inched higher on Thursday on strong domestic demand and a tight supply outlook. The US Dollar traded sharply higher which offered marginal pressure to soybeans. With the late rally, November soybeans closed 2 cents higher on the week.
Powered by Commodity Insights