In the domestic market, soybean complex edged higher after trading in a narrow range for five days in a row. Prices edged higher tailing the gains from the international market. However, many participants stayed away due to year end. Going forth, we must note that spot markets in Madhya Pradesh shall remain closed from 27th March - 2nd of April on account of festivals and yearly bank closure. This will trim arrivals and keep sentiments in favour of the bulls. However, post the month of March, supplies of mustard will set to rise and this is expected to pull down mustard price. Arrivals are expected to rise to average of 380,000-400,000 bags from the current arrivals of 280,000 bags. For the day we can expect a continuation of the upside in the soy complex.
In the Chicago Board of Trade, soybean futures rose 2 percent on bargain buying amidst tight stocks. Hopes of fresh demand to set in after China plans to cancel more cargoes from Brazil due to the logistic delays supported the buying interest at lower levels. Near month futures showed more strength while gains in the far months were capped by expectations for expanded U.S. soy plantings in 2013. Soy oil futures supported by firming U.S. cash soy oil market amid a slowing U.S. soy crush and continued demand from biodiesel producers. However, the slowdown in weekly export numbers did little to cool down prices. USDA reported export sales of U.S. soybeans in the latest week at 107,800 tons for 2012/13 which were below the trade expectations of 3,00,000 – 6,00,000 tons and 234,100 tons for 2013/14 for new crop soybean, which were within the trade expectations of 1,50,000 – 4,00,000 tons. Brazilian dock workers called off a national port strike set for next week, following talks with the government over reform of the country's ports.
