SOYBEAN / MUSTARDSEED

Soybean Aug contract at NCDEX gain by 0.45% and Mustard Seed Sep almost flat on fresh buying interest and a firm spot. Traders wanted to enter after the futures lost significantly during the first 2-sessions of the week. Soybean futures lost 5%, while rapeseed shed about 4% in the first 2-sessions.

Soybean sowing was up 13% to 2.48 million hectares in between June 1 and July 3. The country is likely to see a record over 10 million hectares under soybean cultivation in the current sowing season, higher than last year's 8.85 million hectares.

India is looking to buy 1.5 million tones of vegetable oils in the 3-months starting May to stock up for the festival season, an official in the Solvent Extractors Association of India, said on Tuesday.

The government said last Rapeseed production in 2008 is likely to fall by 13.6% to 6.43 million tones. Growing oilseed demand globally, high crude oil prices at over $135 per barrel and lower winter-sown rapeseed crop in India and China also boost prices. Lower crop for current season, uncovered millers and low warehouse stocks are prompting traders to buy at every fall.

Against this Leading industry analyst Dorab Mistry said last Rapeseed output at below 5 mln tones.

Only bearish factor is double exchange warehouse stock at NCDEX as it rose from 38600 MT on 1st Oct to 61729 MT as per latest data and this might pressure for near month contract.