Commodity report 27 april 2015 ways2capital

Page 1


✍ NCDEX DAILY LEVELS DAILY

EXPIRY DATE

R4

R3

R2

R1

PP

S1

S2

S3

S4

SYOREFIDR

19 JUN 2015

594

593

592

591

590

589

588

587

586

SYBEANIDR

19 JUN 2015

4274

4191

4108

4065

4025

3982

3942

3859

3776

RMSEED

20 MAY 2015

4066

3972

3878

3839

3784

3745

3690

3596

3502

JEERAUNJHA

20 MAY 2015

19876

19286

18696

18303

18106 17713 17516 16926

16336

CHANA

20 MAY 2015

4347

4262

4177

4138

4092

4053

4007

3922

3837

CASTORSEED

20 MAY 2015

4059

3980

3901

3851

3822

3772

3743

3664

3585

✍ NCDEX WEEKLY LEVELS WEEKLY

EXPIRY DATE

R4

R3

R2

R1

PP

S1

S2

S3

S4

SYOREFIDR

19 JUN 2015

664

640

616

603

592

579

568

544

520

SYBEANIDR

19 JUN 2015

5268

4812

4356

4189

3900

3733

3444

2988

2532

RMSEED

20 MAY 2015

4304

4121

3933

3869

3755

3686

3572

3389

3206

JEERAUNJHA

20 MAY 2015

21676

20461

19246

18578

18031 17363 16816 15601

14386

CHANA

20 MAY 2015

4845

4573

4301

4200

4029

3928

3757

3485

3213

CASTORSEED

20 MAY 2015

4747

4410

4073

3937

3736

3600

3399

3062

2725


✍ MCX DAILY LEVELS DAILY

R4

R3

R2

R1

PP

S1

S2

S3

S4

ALUMINIUM

EXPIRY DATE 30 APR

123

120

117

115

114

112

110

107

104

COPPER

30 APR

415

404

393

382

378

378

371

360

349

CRUDE OIL

18 MAY

3905

3821

3737

3692

3653

3608

3569

3485

3401

GOLD

05JUN

27752

27423

26900

26765

26571

26436

26107

25778

24650

LEAD

30 APR

142

138

134

133

130

129

126

122

116

NATURAL GAS

26 MAY

170

167

164

162

161

159

158

155

152

NICKEL

30 APR

958

916

847

859

832

817

790

748

706

SILVER

05 MAY

37628

37071

36514

36237

35957

35680

35400

34843

34286

✍ MCX WEEKLY LEVELS WEEKLY

EXPIRY

R4

R3

R2

R1

PP

S1

S2

S3

S4

ALUMINIUM

30 APR

126

122

118

117

114

113

110

106

102

COPPER

30 APR

431

414

397

391

380

374

363

346

329

CRUDE OIL

18 MAY

4446

4162

3878

3762

3594

3478

3310

3026

2742

GOLD

05 JUN

27843

27482

27121

26914

26760

26553

26399

26038

25677

LEAD

30 APR

148

142

136

134

130

128

124

118

112

NATURAL GAS

26 MAY

179

173

167

164

161

158

155

149

142

NICKEL

30 APR

1024

957

890

867

823

800

756

689

622

SILVER

05 MAY

39667

38481

37295

36628

36109

35442

34923

33737

32551

ALUMINIUM

30 APR

126

122

118

117

114

113

110

106

102

COPPER

30 APR

431

414

397

391

380

374

363

346

329


✍ MCX - WEEKLY NEWS LETTERS ✍ INTERNATIONAL NEWS ✍ World steel demand to decrease in 2015: World steel Global steel use should grow at a slightly slower pace this year than last because of China's slow down, although elsewhere steel use is mostly improving and 2016 prospects look brighter, the World Steel Association said on Monday. "We hear increasingly positive use from developed economies, especially ... the euro zone. In the developing world we see increased optimism about India and growth in the MENA and ASEAN countries," said Hans Jurgen Kerkhoff, chairman of the group's Economics Committee. "While these developments will not be enough to counter-balance the deceleration of China, we expect to see gradually improving growth prospects beyond 2016," he added. Global apparent steel use - steel both known and assumed to have been used - is expected to grow by 0.5 percent this year to 1.544 billion tonnes, compared with growth of 0.6 percent last year, Worldsteel said.

This primarily because use in China, which accounts for about half of the world's steel consumption, is expected to fall 0.5 percent to 707.2 million tonnes from last year. Next year, however, global apparent steel use is expected to grow 1.4 percent to 1.566 billion tonnes. Emerging and developing economies should be up 4 percent, developed economies 1.8 percent. Global steel prices are nonetheless currently languishing at their lowest levels in nearly six years amid structural oversupply. Usage in China, the world's second largest economy, is falling and it produces about 100 million tonnes more than it consumes. Beijing is introducing measures to cut excess steel capacity but there is a question about how successful it will be. Also a concern, especially for miners of iron ore, a key steelmaking ingredient, is whether Chinese steel use has peaked. Iron ore prices have plunged some 60 percent since last year after a concerted effort by major producers to expand output and boost their market share by driving out high cost rivals. An iron ore glut has since built, one that would not easily disappear if Chinese steel use is in long term decline.

"China is at the beginning of long and flat peak steel use. The peak might stretch over 3-5 years, with (demand) hovering around 720-750 mln tonnes, then we may see a gradual decline to 680 million tonnes in the mid-2020s," Worldsteel director general Edwin Basson said. "So we don't see a rapid increase in iron ore costs in our industry.


� China cuts bank reserves again to counter slowdown China's central bank on Sunday cut the amount of cash that banks must hold as reserves, the second industry-wide cut in two months, adding more liquidity to the world's second-biggest economy to help spur bank lending and combat slowing growth. The People's Bank of China (PBOC) lowered the reserve requirement ratio for all banks by 100 basis points to 18.5 percent. The reduction is effective from April 20, the central bank said in a statement on its website www.pbc.gov.cn. The latest cut in the reserve requirement shows how the central bank is stepping up efforts to ward off a sharp slowdown in the economy. Weighed down by a property downturn, factory overcapacity and local debt, growth is expected to slow to a quarter-century low of around 7 percent this year from 7.4 percent in 2014, even with expected additional stimulus measures. The PBOC last cut the reserve requirement ratio for all commercial banks by 50 basis points on February 4, the first industry-wide cut since May 2012. The central bank has also cut interest rates twice since November in a bid to lower borrowing costs and spur demand.

� Russia has bigger concerns than oil, ruble: Russia Dep PM Faced with the triple whammy of plunging oil prices, currency volatility and Western sanctions, there's no dearth of challenges for Russia's ailing economy, but Deputy Prime Minister Arkady Dvorkovich said what hurts most is the scarcity of financing for new investments. "The shortness of financing for new investments is where the Russian economy is being hit in the most important way," Dvorkovich told CNBC on the sidelines of World Economic Forum on East Asia in Jakarta. "How do we deal with this? We are working with new partners. This is why we are in China, in other countries, looking for new partners who can bring new investments into the country," he added. Russia's economy, which grew by just 0.6 percent in 2014, is expected to enter a deep recession this year under the weight of lower oil prices and sanctions, which have compounded the country's underlying structural weaknesses and undermined business and consumer confidence. Earlier this month, the International Monetary Fund (IMF) slashed its growth outlook for the country, forecasting a contraction of 3.8 percent in 2015 and 1.1 percent in 2016. Its earlier estimate was for a contraction of 3 percent this year and 1 percent next. Nevertheless, Dvorkovich says the country has built up enough reserves to weather the rout in the commodities market. "We were not counting on higher oil prices in our economic policies. We were saving some


money for the times like what we face now, so we have reserves that allow us to smooth this stage and to help poor families and increase unemployment benefits," he said. As for the precipitous fall in the ruble over the past year, Dvorkovich said the implications are not all negative as it gives Russian manufacturing and agricultural exports a pricing edge in global markets. From economics to geopolitics Responding to criticism over the Kremlin's decision to lift a self-imposed ban on supplying a sophisticated missile air defense system to Iran, Dvorkovich said: "We are not breaking any sanctions." "We will fulfill our commitments and responsibilities in full compliance with international legislations. Our partners shouldn't doubt that we would work in that manner," he said. Read More: Why Russia is delivering missiles to Iran The end to the ban on shipping the S-300 surface-to-air missile system to Iran, which had been in place since 2010, was spurred by the recent progress in talks over Tehran's nuclear program. The U.S. and Israel, among the most vocal critics, fear the S-300s could be used to protect Iranian nuclear sites from future airstrikes. As for Moscow's deepening ties with Pyongyang, Dvorkovich, said "we are friendly countries to each other." "We are long standing partners with North Korea. The political and economic systems are different, but it requires big investment especially into infrastructure. We will continue our consultations, and we will be work in a way that is predictable and safe for both partners as we did before." � China factory activity falls to one-year low China's manufacturing activity fell to a one-year low in April, a private survey showed on Thursday. The flash HSBC Purchasing Managers' Index (PMI), compiled by Markit, came in at 49.2, compared with a Reuters forecast for a 49.6 print, and following the final March reading of 49.6. A figure below 50 signals contraction. "Operating conditions in China's manufacturing sector deteriorated slightly for the second month running in April," said Markit economist Annabel Fiddes. "Production increased only marginally, while total new business declined for the second successive month." Fiddes said stronger deflationary pressures in the sector reflected weak demand conditions, while job shedding across manufacturing firms was recorded for the eighteenth month in a row. "On a brighter note, demand from overseas improved in April, with new export work rising for the first time in three months," she added. China markets pulled back modestly following the data; Shanghai Composite fell deeper into negative terrain, down 0.3 percent, while the Hang Seng index trimmed gains to 0.6 percent from 0.8 percent. The Australian dollar fell as low as $0.7718, from $0.7733 before the data. Over the weekend, the People's Republic of China slashed the reserve requirement ratio (RRR)


of major banks. The 100 basis point-cut to 18.5 percent is the biggest since 2008, during the height of the global financial crisis. The move was the latest in a series of aggressive measures by policymakers to stem further slowdown in the world's second largest economy. China grew 7 percent in the first quarter on an annual basis, growth figures revealed last week, the slowest pace in six years. The flash redaing is typically based on approximately 85–90 percent of total PMI survey responses each month. April's final PMI data will be released on May 4.

✍ BULLION Bullion shines amidst dollar drop: Gold futures surged in the domestic market on Thursday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as a tumbling US dollar boosted the appeal of the bullion as an alternative asset.Stronger greenback makes gold cheaper for those holding other currencies, thus bolstering demand.Disappointing US factory, housing and labour market data signaled softness in the world’s biggest economy, boosting the case for the Federal Reserve to delay monetary tightening, and bolstering the lure for gold as a store of value. Thursday’s economic releases showed an uptick in US jobless claims last week, a drop in new home sales in March and slower gains in manufacturing in April.Gold may trade on a subdued note today as investors stay cautious ahead of US durable goods orders data which will offer further cues over the economy’s health. Gold eases in Asia as HSBC China flash PMI shows continued weakness: Gold prices held weaker in Asia on Thursday after China showed continued weak manufacturing in a survey of purchasing managers. Meanwhile, in Australia is the first quarter NAB business confidence and business conditions survey showed confidence flat from plus-2 in the fourth quarter and conditions down to plus-2 from plus-5. In China, the HSBC (LONDON:HSBA) flash manufacturing PMI fell to 49.2 in April from March's final of 49.6, shrinking for the third month in-a-row. "The HSBC Flash China Manufacturing PMI signaled a slight deterioration in the health of China's manufacturing sector in March," said Annabel Fiddes, economist at Markit. A renewed fall in total new business contributed to a weaker expansion of output while companies continued to trim their workforce numbers. Meanwhile, manufacturing companies continued to benefit from falling input costs stemming from the recent global oil-price decline. However, relatively muted client demand has led firms to pass on savings in a bid to boost new work and cut their selling prices at a similarly sharp rate." On the Comex division of the New


York Mercantile Exchange, Gold futures for June delivery eased 0.12% to $1,185.50. Elsewhere, Silver for May delivery fell 0.15% to 15.773 a troy ounce. Copper for May delivery rose 0.19% to $2.676 a pound. Overnight, gold futures prices plummeted on Tuesday slipping under $1,200 an ounce, as upbeat U.S. economic data fueled speculation that the Federal Reserve might institute an interest-rate hike by June after all. Gold prices dipped on Wednesday after the National Association of Realtors said existing home sales increased 6.1% last month to 5.19 million, its highest level in 18 months. Economists polled by Reuters expected the figure to tick up to increase to 5.03 million. Separately, the Mortgage Bankers Association said mortgage applications swelled by 5% for the week ending April 17, marking its fourth increases over the last five weeks. A decrease of four basis points in mortgage rate in comparison with the prior week helped boost demand. The Federal Housing Finance Agency (FHFA) also said Wednesday that its House Price Index (HPI) ticked up 0.7% in February, above a 0.4% increase a month earlier. The index, which covers single-family housing by evaluating data compiled by Fannie Mae and Freddie Mac, increased 5.4% on a year-over-year basis. In its previous monthly report, the FHFA said the index rose 5.1% from its level during the same period last year. The Fed is taking a data-driven approach, as it contemplates on the timing of its first interest-rate hike since 2009. In recent weeks, worse than expected import/export, industrial production and employment data have lowered expectations of an imminent rate hike when the Federal Open Market Committee meets in June. When the Fed released the minutes from its Federal Open Market Committee meeting in March on April 8, it reiterated that it will phase in monetary policy changes gradually when it is confident that the economy is strong enough to handle a rate increase. "When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2%," the Fed said in the minutes. "The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run." Gold struggles to compete with high yield-bearing assets in periods of rising interest rates. On March 6, gold plunged by more than $30 an ounce when a strong U.S. jobs report for the month of February provided an indication that the Federal Reserve could alter its interest rate environment. Gold flat to weaker in early Asia with attention set on Greece debt:


Gold prices were flat to weaker in Asia on Wednesday as investors eyed euro zone woes over Greece that threaten to lead to a possible exit of the single-currency union. On the Comex division of the New York Mercantile Exchange, gold for June delivery eased 0.04% to $1,202.60 a troy ounce. Elsewhere, Silver futures for May delivery fell 0.09% to 15.993 a troy ounce. Copper for May delivery rose 0.11% to $2.698 a pound, after a bond default in the Chinese construction sector. Kaisa Group Holdings, a Shenzen-based company, became the first Chinese property developer to default on its dollar bonds, after it failed to meet a coupon payment on two notes on Monday. China accounts for more than 40% of the world's copper consumption with houssing and construction major users of the commodity. Overnight, gold futures edged up on Tuesday reversing some of its losses during the previous session, as a potential Greek default on its sovereign debt remained in focus. On Tuesday, Jeroen Dijisselbloem, the head of the euro group of prominent finance ministers, steadfastly insisted that Greece must meet all of its obligations in the coming weeks if it wants to remain in the euro zone. Next month, Greece owes the International Monetary Fund a payment of more than €773 million on a loan under the IMF's first Greek bailout in 2010, before it must meet two separate obligations of more than €300 million to the IMF in June. By late-July, Greece owes an additional €3.45 billion to the European Central Bank for bonds related to a 2012 default. "The money is starting to run out," Dijisselbloem told European broadcaster RTL. Dijisselbloem remained adamant that every effort must be undertaken to prevent a Greek exit from the euro zone, a move that has earned the popular moniker "Grexit," in recent weeks. "If Greece leaves the euro zone you would get very dangerous instability," he added. "It's in the interests of Greece and the euro zone as a whole to avoid that." The sentiments were echoed on Tuesday by Jason Furman, the chairman of the White House Council of Economic Advisers. It is commonly thought by a number of economists that a Greek departure from the euro zone could have a contagion effect, impacting countries such as Spain, Italy and Portugal whose yields on its government debt have slipped into negative territory. "A Greek exit would not just be bad for the Greek economy, it would be taking a very large and unnecessary risk with the global economy just when a lot of things are starting to go right," Furman said in an interview with Reuters. Athens officials on Monday reportedly issued a decree to local governments forcing them to transfer all cash balances to the Greek Central Bank ahead of Friday's critical meeting of euro zone finance ministers in Latvia. Greece prime minister Alexis Tsipras is expected to present a revised list of reform measures that could unlock a vital financial lifeline to the cash-strapped country. The effort could raise about €2 billion, according to multiple reports.


� BASE METAL Copper futures climb to 2-week high on China stimulus move: Copper prices rose to a two-week peak on Monday, after China's central bank cut banks' reserve requirement ratios in a surprise decision over the weekend. On the Comex division of the New York Mercantile Exchange, copper for May delivery hit a session high of $2.829 a pound, the most since April 6, before trading at $2.789 during European morning hours, up 1.5 cents, or 0.56%. Futures were likely to find support at $2.668, the low from April 15, and resistance at $2.831, the high from April 6. The People's Bank of China lowered the amount of deposits it requires banks to hold as reserves to 18.5% from 19.5% effective April 20, it announced on Sunday. The move came after official data last week showed that China's economy grew 7.0% in the first quarter, the slowest pace of growth since the global financial crisis in 2008. Data on industrial production, retail sales and fixed asset investment also fell short of forecasts, indicating that China needs to act to prevent a further slowdown in the economy. The Asian nation is the world's largest copper consumer, accounting for almost 40% of world consumption last year. � Zinc surges on strong buying support : Zinc prices rose by 1.08 per cent on Monday at the domestic markets due to the decline in the zinc stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME zinc stocks fell by 2975 metric tonnes to 492975 metric tonnes as on April 20, 2015. Zinc futures for April 2015 contract, at MCX, were trading at Rs 140.05 per kg, up by 1.08 per cent after opening at Rs. 138.80 against the previous closing price of Rs. 138.55. It touched the intra-day high of Rs. 140.30 till the trading. Major refined zinc exporting countries are Canada, Australia and Rep. of Korea, while major refined zinc importing countries are China, USA and Germany. � Lead drops on sluggish industrial demand: Lead prices fell by 1.01 per cent on Thursday at the domestic markets as a result of low demand for the commodity from battery-maker in the spot market in the midst of weak overseas trend. At the MCX, Lead futures, for the April 2015 contract, is trading at Rs 127.65 per kg, down by 1.01 per cent, after opening at Rs 128.25, against a previous close of Rs 128.95. However, losses were curbed due to the decline in the lead stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME lead stocks fell by 4500


metric tonnes to 187875 metric tonnes as on April 23, 2015. ✍ ENERGY Oil prices dip as Saudi output remains near record high: Oil prices eased back from midday highs on Monday after Saudi Arabian Oil Minister Ali al-Naimi said production in the world's biggest crude exporter would stay near record highs at around 10 million barrels per day (bpd) in April. Brent crude was trading at USD 63.73 per barrel at 0748 GMT, down from an intraday peak of USD 64.34, while US crude for May delivery was at USD 56.14 a barrel, down from an earlier high of USD 56.65. "I have said many times we will always be happy to supply to our customers with what they want. Now they want 10 million," Naimi told Reuters on Monday in South Korea's capital Seoul, where he is due to attend a board meeting of the state oil firm Saudi Aramco. Naimi earlier this month said Saudi Arabia produced 10.3 million bpd of crude in March, eclipsing a previous record of 10.2 million bpd, in what is seen as a move to defend market share against non-OPEC competition, including the United States. US oil drilling rigs fell for a record 19th straight week to the lowest since 2010, data from Baker Hughes showed, which has helped lift prices from six-year lows reached in January. Since the beginning of April, oil prices have risen around 17 percent, pushed up by reports of a possible dip in US output, but Morgan Stanley warned on Monday that Saudi production could be more important than developments in the United States. "We worry about the market's fixation on the US ... OPEC production may be more important as production increased 1 million barrels per day month-on-month in March. Saudi Arabia alone added the equivalent of half of Bakken (the largest US shale oil field) production in a matter of months – far beyond any US slowdown," the bank said in a note. ✍ Natural Gas futures extend rally ahead of storage data: Natural Gas futures ended higher in the domestic and overseas market on Wednesday as investors and speculators booked fresh positions in the energy commodity as traders eyed the weekly EIA storage numbers set for release on Thursday to gauge the strength of demand for the fuel in the world’s biggest fuel consumer, the US. Analysts expect an 80 billion cubic feet build in US stockpiles in the week ended April 17, 2015, which will be well above the 45 billion cubic feet uptick witnessed in the same period a year ago, and topping the five-year average gain of 46 billion cubic feet. At the MCX, Natural Gas futures for April 2015 contract closed at Rs 164.1 per 1 kg, up by 1.11 per cent after opening at Rs 161.7, against the previous closing price of Rs 162.3. It touched the intra-day high of Rs 165.4


✍ NCDEX - WEEKLY NEWS LETTERS NCDEX ties up with DD Kisan to provide agri-price information NCDEX has tied up with public broadcaster Prasar Bharati for providing spot and futures prices of farm items to the soon-to-be-launched DD Kisan' channel. Besides providing data for price tickers, NCDEX will also provide news stories, expert analysis and feature stories to showcase the economic turnaround stories from hinterlands and rural India. A memorandum of understanding (MoU) was signed in this regard last week.The government and Prasar Bharati are preparing in full swing forlaunching the channel at the earliest. In his 2014-15 Budget speech, Finance Minister Arun Jaitley had allocated Rs 100 crore for launch of Kisan channel to provide real-time information on various farming and agricultural matters.

✍ Agri commodity prices start upward move Up trend in agri commodity is expected to continue due to fear of decline in output as unseasonal rain affected the crop. Prices of most agricultural commodities moved up in futures trading on the National Commodity & Derivatives Exchange, amid concerns of lower output in the ensuing kharif season on prediction of lower monsoon rain this year. Soybean moved up 3.2 per cent to trade at Rs 3,900 a quintal. Chana and sugar rose 2.3 per cent and 1.45 per cent to quote at Rs 3,968 a qtl and 2,453 a qtl, respectively. The price rise is an immediate impact, which might start correcting. Logically, agri commodities’ prices should move up on fear of lower production. But it didn’t happen last year, when rainfall was predicted at less. In fact, food price inflation came down this year despite lower production of foodgrain. A second year of a weaker monsoon may decrease the efficacy of India’s irrigation system and hit agricultural output and farmers. Unseasonal rain since early March have already had a


negative impact on many crops. Prices of agri commodities have seen an upside which was restricted due to high inventory from last year. These have seen an upside due to unseasonal rain and hail.further strong upside movement for agri commodities can be expected this year.

� NCDEX forward trade volume touches 8,000-tonne mark in 6 mths In September 2014, NCDEX had launched trading in forward contracts. Initially, it offered forward trading in sugar and maize but gradually expanded the product basket to 27. A forward contract is a bilateral agreement between two parties to buy or sell an asset or a commodity of specified quantity and quality at a future date on a mutually agreed delivery price. In order to make the forward trading platform more accessible to farmers and traders in mandis, NCDEX introduced membership category known as 'Commodity Participant Members' (CPMs) and a special discount was offered to farmer producer organisations (FPOs) to become members on the forwards segment.The initiative is a path breaking approach to bring real inclusiveness in the real economy in commodities." So far, 10 FPOs from Bihar, Delhi, Maharashtra and Madhya Pradesh have actively participated in the trade, while over 14 have applied for membership. The exchange registered a total commodities trade volume of 7,888 tonnes, worth Rs 24.94 crore, in the last six months. Of that, maize accounted for bulk of the trade with 4,100 tonnes, followed by castor seed at 2,330 tonnes, sugar at 600 tonnes, coriander at 520 tonnes and jeera at 228 tonnes, respectively.

� Chana Chana prices kept rising contunuously on friday by 0.94% to Rs 4,079 per quintal in futures trade on Friday. At the National Commodity and Derivatives Exchange (NCDEX), chana for delivery in May


rose by Rs 38, or 0.94%, to Rs 4,079 per quintal with an open interest of 1,14,050 lots. Also, the commodity for delivery in June was trading higher by Rs 36, or 0.88%, at Rs 4,144 per quintal in 70,060 lots. Speculators enlarged positions amid concern over lower output due to unseasonal rainfall in key producing areas. Further rise can be expected in near future.

� Soybean Soybean prices have gained more than 10 per cent from the beginning of the current month on low supplies in the domestic markets, said traders. Soybean prices in Indore market auctions were Rs 3,500-3,650 per 100 kg compared with Rs 3,200-3,300 per 100 kg in the beginning of the current month. Plant delivery prices were Rs 3,750-3,800 per 100 kg compared with Rs 3,350-3,450 per 100 kg in the beginning of the month. Indore is the soybean trade hub of the country. Other factors like export incentives and local demand also supported the market but prices mainly went up due to low domestic supplies. Average daily arrivals in Madhya Pradesh are around 65-70 thousand bags of 100 kg each which was 70-80 thousand bags last month. Current supplies are considered extremely low by traders and there are no signs of improvement in the coming days. Traders feel the prices may gain further in the coming days due to forecasts of below normal monsoon. The India Meteorological Department (IMD) on Wednesday predicted below normal monsoon this year with north-east and central India among the most affected states. � Refined soya Refine soya prices traded higher by 0.42 per cent to Rs 586.50 per 10 kg in futures trade on tuesday as speculators created fresh positions, amid pick up in domestic demand and restricted supplies from producing belts. At the National Commodity and Derivatives Exchange, refined soya oil contract for June month rose by Rs 2.45, or 0.42 per cent to Rs 586.50 per 10 kg with an open interest of 1,14,955 lots. The August contract traded higher by Rs 1.40, or 0.25 per cent to Rs 570.60 per 10 kg in 1,18,465 lots. The frresh positions built up by speculators due to pick up in demand in spot market led to rise in refined soya oil prices at futures trade and arrivals from producing belts, also supported the upside.


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