Ref Soyoil ended with gains on the back of short covering lead by the reports of weak production estimations. As per the latest release from the International Grains Council, the total production of soybean in South America has been revised lower for the 2011-12 marketing year by 3.6 million metric tonnes to 115.9 million tons, down by almost 15% from the last year. This is mainly due to severe draught condition during the crop formation stage. Drought has hit South American corn and soybean production, and last week Argentina's government cut its soy and corn production estimates, dropping both more than 10 percent below last year's harvest levels. Soy complex is bullish because fundamentals are supportive. Export demand for oilmeal is strong and likely to remain firm. Demand for Indian soymeal is very good. Lower production in South America has been helping Indian exporters. Madhya Pradesh and Maharashtra are the main states and sowing starts somewhere during late June to whole July. In India overall import of vegetable oils during November 2011 to March 2012 is up by 21%. As per WASDE (USDA), global oilseed production for 2011/12 is projected at 440.6 million tons, down 5.2 million from last month. At the Indore spot market soyoil edged up by 4.2 rupee to 771.05 rupees 10 kgs.
Ref soyaoil trading range for the day is 775.27-782.47.
Ref soyoil ended with gains on the back of short covering lead by the reports of weak production estimations
Madhya Pradesh and Maharashtra are the main states and sowing starts somewhere during late June to whole July.
Total production of soyabean in South America has been revised lower by 3.6 million metric tonnes to 115.9 million tons
At the Indore spot market soyoil edged up by 4.2 rupee to 771.05 rupees 10 kgs.
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