In the domestic market, it was the fourth consecutive day that soybean prices have been trading in a narrow range between Rs 3510-3470 per quintal. Lack of interest among participants largely due to year end is the key reason behind the silent market. Despite a pullback in the international market and positive cues from the Malaysian market failed to drive to Indian markets further after it opened on positive note. Going forth, an ample supply of soybean in the international market and large domestic mustard crop is likely to keep upside restricted. Arrival of mustard is close to 280000 bags and is expected to pick up momentum post the Indian festival of Holi where arrivals go up towards 350,000- 400,000 bags. This is likely to pull down prices of mustard in the coming month owing to large supplies. Soybean arrivals in the spot market of Madhya Pradesh have been close to 80,000 bags quoting at Rs 3550 per quintal. For the day, some upside can be seen and only if prices sustain above 3510 can we see further gains on board.
On the Chicago Board of trade, soybean futures ended the session higher after falling for six consecutive days on account of short covering and tight US supplies. With China cancelling imports from Brazil and the ongoing logistical concerns which is delaying shipments have raised fresh hopes of demand shifting to the US again. Only the near month were seen supported while gains in the far month contracts were limited in anticipation on a bearish USDA report. The Sunrise group, China's leading soybean trader is expected that it would cancel 10 delayed cargoes from Brazil that had been scheduled to arrive in January and February, as well as 23 cargoes that had been contracted for shipment between April and June. Malaysian palm oil futures rose to the highest in more than a week on Wednesday on higher export demand, although gains were curbed after Cyprus's rejection of a proposed bailout plan led to worries of a default. This has built expectations of a drawdown in stocks yet again in the month of March.
