eFeedLink - India Oilseed Weekly: Record oilseed sowing on cards for India (week ended Dec 21, 2008)

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December 22, 2008

India Oilseed Weekly: Record oilseed sowing on cards for India (week ended Dec 21, 2008)

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Price Summary

Soy Indore prices again up in this week with a gain of Rs. 107 per tonne on Saturday (December 20) and settled at Rs. 17,625 per tonne.

In meal sector, Soy meal Indore was also the gainer with INR 194 per ton with Soy Meal 48% with a loss of INR 400 per ton only.

However, price of Peanut Kernal, which was the biggest sufferer of INR 2, 128.00 per ton and Peanut Meal of INR 100.00 per ton respectively.

Price of Rapeseed increased by INR 276.00 and Rapeseed Meal decreased by INR 235.00 per ton respectively.

However, Sunflower price was stable as compared to last week's rate. Whereas its Meal was up by INR 200 per ton respectively.

Prices of Groundnut Extraction (GNE) 40% and GNE 45% were came down due to manufacturing program started in Plants for extraction and traded at INR 9, 300 and INR 9, 900 per ton respectively.

Market Analysis

For rapeseed and mustard, the main rabi oilseed crops, Indian farmers have now planted 6.398 million hectares, compared to 5.715 million hectares in 2007-2008.

Acreage has gone up in Rajasthan (2.366 to 2.762 million hectares), Uttar Pradesh (0.778 to 0.853 million hectares), Madhya Pradesh (0.670 to 0.782 million hectares), Haryana (0.499 to 0.625 million hectares) and West Bengal (0.425 to 0.435 million hectares), while dipping marginally in Gujarat (0.328 to 0.292 million hectares).

Meanwhile, weather is good for early and timely mustard sowing in West India. Isolated rain anticipated due to western disturbances in North West India may aid the crop.

The dry sunny weather is favourable for soy harvesting and post harvesting activities that are near completion in Uttar Pradesh, Central and West India.

Market Forecast

Soy

Soy prices continue to be firm on good domestic demand from millers and crushers as well as export demand. The situation has been aided by declining arrivals.

Mustard

Mustard prices are steady to weak on subdued trading and steady arrivals.

Groundnut

Prices are steady on firm demand while futures will be bullish due to expectation of strong export demand.

Guar Seed

Guar prices are low due to increase in arrivals amid decent demand. Lower output may support prices in long term when arrivals start decreasing in a few weeks as exports rise.

The comparison rates of nine commodities like Soy/ Peanut/ Rapeseed/ Sunflower and their meals
Commodities	Prices as on Dec 13	Prices as on Dec 20	Difference
Soy (Indore)	17, 518	17, 625	+ 107
Soy Meal 48%	13, 100	13, 294	+ 194
Soymeal Indore	14, 400	14, 000	- 400
Peanut Kernal	24, 925	22, 797	- 2, 128
Peanut Meal	10, 000	9, 900	- 100
Rapeseed	31, 372	31, 648	+ 276
Rapeseed Meal	11, 410	11, 175	- 235
Sunflower	28, 500	28, 500	Stable
Sunflower Meal	9, 200	9, 400	+ 200
US$1 = INR 47.465 (Dec 22, 2008)