In the Indian markets, soybean futures continued to gain for the fourth day in a row as buying interest emerges. Supplies in the local market were thin as farmers are holding back their supplies in anticipation of better returns. Another supporting factor has been robust demand for soy meal from in India in the last couple of months. India exported 581,606 tonnes of soy meal in February, compared with 344,240 tonnes a year earlier. Palm oil futures ended lower in the Indian market on reports that India’s palm oil imports could rise more than 17 percent in the current marketing year. India is likely to import 9 million tons despite the government’s efforts to curb imports by raising import duties. This will help producers in Malaysia and Indonesia to trim the record high stock piles. Weather forecast of rains in Madhya Pradesh, Vidarbha and Chhattisgarh over 28th and 29th of March is likely to be supportive for prices.
On the Chicago Board of Trade, Soybean futures fell for the second straight session on position-squaring ahead of the U.S. government reports this week on old-crop stocks and 2013 U.S. plantings. Market expectation is that USDA will forecast U.S. planting at a record-high 78.4 million aces and March 1st soybean stocks are expected at 935 million bushels, the lowest level in nine years. On the South American front rains over Brazil’s main soy-growing areas in the last week slowed harvesting and threatened the quality of the crops. Harvesting is completed on 60 percent of the total area planted as of 22nd March, compared with 61 percent a year earlier. Malaysian palm oil futures fell on Monday on weaker than expected exports, but losses were limited as a last-ditch deal to bailout Cyprus supported investor appetite for riskier assets. Palm oil exports from the 1-25 March fell 1.06 million tons, a slide of 7 percent compared to the same period last month.
