January 4, 2010

US soy prices to trade higher on firm overseas market

The US soy futures traded lower on account of profit taking on Wednesday (Dec 30), with some investor and traders liquidating their long position on lack of fresh fundamentals.

The USDA's weekly export sales inspection report released on Monday, which came higher at 51.9 million bushels, up from just 33.7 last week.  This resumes the strong weekly totals seen in the several weeks prior to last week's dip.

Cumulative inspections stand at 52.0% of the USDA's projection for the marketing year versus a 5-year average of 42.2%. Inspections need to average 17.9 million bushels each week to reach the USDA's projection.

According to reports, prices (NCDEX February Contract) closed lower at Rs.2396.00 per quintal on Wednesday; its high of the day was 2405.00 levels and touched a low of 2355.00 levels.

Reports stated that soy prices are expected to trade slightly higher on firm overseas market (for short term). However, in the long term it is expected to trade lower on account of lower export demand of domestic soymeal. Global soy production is estimated higher as compared to last year also in favour of bears in the market.