Poultry
xClose

Loading ...
Swine
xClose

Loading ...
Dairy & Ruminant
xClose

Loading ...
Aquaculture
xClose

Loading ...
Feed
xClose

Loading ...
Animal Health
xClose

Loading ...
RSS
 
November 3, 2008
 
India Oilseed Weekly: Soy prices may ease with fresh arrivals and lower demand (week ended November 1, 2008)
 
An eFeedLink Exclusive
 
 
Price Summary
 
Indore soy prices remain stable on Saturday (November 1) and settled at Rs 24,000 as compared to last week's closing rate of Rs. 24,000.
 
Majority of commodity items including rapeseed, sunflower seeds, soymeal Indore, rapeseed meal and sunflower meal were stable as compared to last week's prices.
 
Only soymeal 48 percent moved up with a positive difference of Rs. 175 per tonne and settled at Rs. 14,675 per tonne as compared to last week's price of Rs. 14,500 per tonne. 
 
The worst affected price was of peanut kernal and peanut meal, which settled at Rs. 30,500 and Rs. 14,750 from last week's rate of Rs. 31,000 and Rs.15,250 making a gap of Rs. 500 each.
 
Pearl Millet (Bajra) was traded whole week in Delhi at the price Rs. 7,300 to Rs. 7,400 per tonne.
 
Groundnut Extraction (GNE) 40 percent and GNE 45 percent were traded at Rs. 13,000 and Rs. 14,000 per tonne respectively.
 
Soy prices moved down at NCDEX on Saturday with the November contracts falling by -0.06 percent at Rs. 16,750 per tonne.
 
 
Market Analysis
 
Economic slowdown may hit guar gum export
 
Guar gum exports are likely to be hit, while domestic consumption may also decrease in view of the global economic slowdown.
 
"Demand from countries such as the US and Europe is likely to be affected in view of the slowdown and crash in the commodities market, especially crude. We expect at least a 50,000-tonne fall in guar gum exports," said Mr. Jeewan Gandhi, president of the Indian Guar Gum Manufacturers Association.
 
Guar gum exports were initially estimated to touch 225,000 tonnes this fiscal; but now the industry expects it to hit 175,000 million tonnes only.
 
On the other hand, domestic consumption was expected to be around 50,000 tonnes but could not be lower at 40,000 tonnes.
 
"Global recession and slowdown in demand is very much evident. We don't see any rise in guar gum demand compared with last year. In fact, we could witness a fall," Gandhi added.
 
Guar gum is derived from Guar seed. Guar or cluster beans is a legume crop that grows best in the semi-arid regions in the country. In India, guar is grown primarily in Rajasthan. It is also grown in Haryana, Punjab, Gujarat and Madhya Pradesh.
 
India is the major producer of guar seed and gum, making up 80 to 85 percent of the total global supply.
 
"Crude prices have dropped to below US$70 a barrel and exploration activity could slow down. As a result, demand for industrial applications too will be hit," he said.
 
Due to lack of demand, guar seed prices have currently slipped to Rs14,500 a tonne from over Rs 17,900 quoted during the end of August.
 
Guar split prices have on the other hand, dropped to Rs 36,500 a tonne.
 
Oil Palm India to set up kernel plant in Kerala
 
Oil Palm India Limited, a joint venture of the state and central government is setting up a kernel oil plant, which is scheduled to be commissioned in April 2009.
 
The plant, estimated to cost Rs 35 million, will be the first of its kind in the public sector in the country.
 
It will incorporate a standby boiler to ensure uninterrupted operation, according to V.B. Binu, chairman, and Mathew Jacob, managing director of Oil Palm India.
 
The company has also submitted a corporate plan to the government for the revival of Kerala Agro Food Products at Punalur in association with Kerala Agro Industries Corporation.
 
Oil Palm India, with equity contributions of Rs. 49.9 million and Rs. 67.9 million respectively by the central and the state government is engaged in oil palm cultivation in 3, 646 hectares of land in Kollam district.
 
Soy
 
Prices may ease with increase in fresh arrivals and decrease in festive demand from millers.

Harvesting has picked up in parts of Madhya Pradesh and Vidharbha as weather remains dry and sunny.

Increased acreage, good monsoon and optimum sunshine have helped to boost India's soy production.
 
Ground Nut
 
Optimum supplies and low buying interest may keep the ground nut prices weak.
 
Weather remains congenial for crop in major belts like Gujarat, Andhra Pradesh and Maharashtra where good monsoon rain was received this season.
 
Sowing is almost complete in Karnataka and Tamil Nadu while sowing of rain-fed crop has commenced in Tamil Nadu.
 
Guar Seed

Market sentiments are firm due to good domestic demand amid increase in arrivals though exporters are inactive.

Harvesting picks up pace in North Rajasthan while arrivals from West Rajasthan may commence from Mid-November.

Timely sown crop is mostly in seed setting stages in major belts.
 
 
Market forecast
 
Ground nut
 
Optimum supplies and low buying interest may keep the ground nut prices weak or stable. Expected bumper output in oilseeds will further pressurize prices.
 
Guar seed
 
The guar seed spot market scenario was of bearish mood. Lower export demand and moderate arrivals kept pressure on the prices.
 
Prices are firm across major markets on account of good domestic demand and optimum arrivals. Market sentiments are firm due to good domestic demand amid increase in arrivals though exporters are inactive.

Soy

Prices may ease due to increase in fresh arrivals amidst steady demand.
 
In the week ahead, oil meal and oilseed prices may remain stable with almost same status or slightly downward in comparison to the current week's level.
 

The comparison rates of nine commodities like Soy/ Peanut/ Rapeseed/ Sunflower and their meals

Commodities

Prices as on Oct 25

Prices as on Nov 1

Difference

   Soy (Indore)

24, 000

24, 000

Stable 

   Soy Meal 48%

14, 500

14, 675

175

   Soymeal Indore

14, 000

14, 000

Stable

   Peanut Kernal

31, 000

30, 500

-500

   Peanut Meal

15, 250 

14, 750

-500

   Rapeseed

30, 000  

30, 000 

Stable

   Rapeseed Meal

10, 350

10, 350

Stable

   Sunflower

28, 000

28, 000

Stable

   Sunflower Meal 

10, 800

10, 800

Stable

US$1 = Rs 48.755 (Nov 3, 2008) 

 


All rights reserved. No part of the report may be reproduced without permission from eFeedLink.

Share this article on FacebookShare this article on TwitterPrint this articleForward this article
Previous
My eFeedLink last read