Saturday, March 24, 2012


Domestic oilseeds may trade higher taking advantage of the gap between the global oilseeds production and consumption which is expected to remain tight in days to come.Moreover, tracking the domestic scenario, persistent wedding have led demand for edible oils which in turn has improved the oilseeds buying. Soybean futures may continue to post gains as the solvent extractors are seen keen on buying the seeds even at higher quotes to meet the improved oil demand during the period.Adding to the bullishness, the oil meal prices are seen to remain strong due to the good domestic demand from poultry feed industry. Mustard futures may show some decent upside moves due to surge in edible oil demand owing to auspicious Hindu wedding dates. Moreover, the Solvent Extractors Association of India, in its latest report, has estimated India's RM seed 2011/12 crop at 62.65 lakh tonnes as compared to 68.5 previous season, a fall of about 8.5 per cent due to lower sown area this season. On the international platform, U.S soybean futures are expected to maintain their upside moves boosted by the export demand, including China, and expectations for a smaller South American crop due to drought. Investors would be eyeing the World Agricultural Supply and Demand Estimates to be
released by USDA. CPO futures (Mar) may touch 585 levels supported by heightened Malaysian prices on the basis that slowing production growth in Indonesia and Malaysia is likely to tighten global supplies.