Chinese soymeal demand will increase in April as consumption from seasonal fish farming is expected to outweigh a typical post Chinese New Year slump in demand from the livestock sector. Soybean arrivals in April are expected to increase to cope with the higher demand in meal. March arrivals are expected to come in at 6.3 million mt, equal to March 2017. However, for now, crushers are not incentivised to increase their run rates, as domestic meal prices dropped from their pre-CNY highs by RMB60-100 /mt ($9.5 – $16/mt) to 3000-3100 RMB/mt ($475 – $491/mt). Meanwhile, soymeal stocks remain buoyant and currently stand at 720,000 mt, up 40,000 mt on the week. China crushed 1.8 million mt of soybeans last week, unchanged for the same week last year, but remains below levels seen before Chinese New Year, which topped the 2 million mt level. Demand for soy oil remains strong as it is $20/mt cheaper than rapeseed on a CIF basis, at $453/mt while also remaining more competitive than palm oil. About 300,000 mt of soybean oil is expected to arrive in March 2018, up 100,000 mt from the month before.
Haryana govt begins procurement of mustard at MSP to boost prices
The Haryana government has begun procurement of mustard at the minimum support price in the state to support falling prices. The Centre approved the proposal of the Haryana government to allow procurement of 237,250 tn of mustard harvested in 2017-18 (Jul-Jun) in the state at the minimum support price of 4,000 rupees per 100 kg, including a bonus of 100 rupees. Mustard was procurement in 11 districts including Gurugram, Rohtak, Karnal, Charakhi Dadri, and Hisar. Haryana is among the leading growers of mustard. The Centre has also approved the procurement of 800,000 tn mustard in Rajasthan.
Govt hikes base import price of all edible oils
The base import price of three edible oils was increased by $1 per tn. The base import price of refined, bleached deodorised palm oil and crude palm oil was raised by $4 per tn, and $2 per tn respectively. The base import price of crude palm oil was increased to $689 per tn, and that of soyoil to $815 per tn. Based on global prices and fluctuation in foreign exchange rates, the government revises base import prices every fortnight.
Soybean up in Indore on demand from crushers
Prices of soybean rose in Indore because of improved demand from crushers of the oilseed for production of meal. Demand from the crushers were up due to a long weekend. The most active April futures of soybean on the NCDEX were unchanged.