February 5, 2009

US soy futures opened lower and traded with mixed sentiments and prices recovered an hour before closing the market.

Crop conditions have improved in Brazil in recent week, their latest production estimates will release on Thursday (Feb 5).

This week USDA's export inspections were 33.5 million bushels in soy, down from last week's 38.2 million bushels.

The Buenos Aires Grains Exchange put Argentina's soy crop at 34.5 million tonnes to 38.20 million tonnes compared to current USDA estimates of 49.50 million tonnes.

India's soymeal exports amounted to 665,304 tonnes in December 2008 as against 551,382 tonnes during the same month last year.

Domestic prices of soymeal declined slightly on January 31 to Rs 20,500 per tonne as compared to previous day from Rs 21,000 per tonnes at Kandla port.

Soy prices are expected to trade slightly lower on profit booking after sharp rally during the week and weakness was witnessed in soymeal in the short term.

However in the long term, soy prices are expected to trade lower on account of record high domestic production estimates and higher stocks of soy and other oilseeds.

US$1 = Rs 48.47 (Feb 5)