Oilseed likely to remain range bound: Sharekhan

Sharekhan's trading ideas on oilseeds and oil complex

Oil seeds (include- soybean, RM seed, castor seed)

A weak tone witnessed in soybean. A firm tone featured in RM seed.

Soybean prices likely to remain range-bound in expectation of normal and timely monsoon.

According to the weekly report of the US Department of Agriculture, the US soybean planting was 44 percent completed as of May 26, up from 24 percent a week ago and less than the five-year average of 61 percent.

According to IMEA planting intentions report, Soybean area in Brazil’s Mato Grosso region may climb 4.9 percent to 8.28 million hectare and crop production  may reach to record 25.5MMT. Moreover, expected area in Norte region would also surge by 65 percent to 2.1 lakh hectare and in Nordeste region rise of 8.9 percent to 1.31 million hectare is expected.

Argentine Agriculture Ministry’s cuts its soybean 2012- 13 crop estimates to 50.6MMT from its April estimates of 51.3MMT on dry weather conditions in northern growing regions

Argentina port workers strike called off and soybean export likely to resume in coming days.

Outlook: Oilseed likely to remain range bound.

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