soy bean, commodity market, commodity, market, trading

1. P.MALVIN FELICIA

2. INTRO
 Soybean – most economically important bean in the world.
SOY OIL - 17 to 18%
 SOYBEAN
SOY MEAL – 82 to 83%
 Soy oil – Second largest source of vegetable oil.
 Soy meal – 85% of the world’s protein feed demand.
 A Premium product  High digestibility, high energy
content.

3. GLOBAL SCENARIO
 Annual global production 210 – 230 mt.
 55 to 58% of total global oilseed output.
 Annual global trade:
* Soy bean 70 – 80 mt
* Soy oil 9 mt
* Soy meal 52 mt.

4. Major Major Major
Producers exporters importers
• U.S (70- • U.S.A (30- • China (35-
80mt) 35 mt) 40mt)
• Brazil (55- • Brazil (23- • EU
60mt) 28mt) (5-16mt)
• Argentina • Argentina
(32-48mt) (5-15mt)
• China (14-
16mt)
• India (8-
10mt)

5. Global production (2008-
2009)

6. INDIAN SCENARIO
 Annual production 8.5 – 10mt
 In 2009-2010 8.9mt.
 Area 11 million hectares.
 Major cultivators:
* Madhya Pradesh 60%
* Maharashtra 25%
* Rajasthan 6-7%
* Andhra Pradesh 1-2%

7.  India is highly dependent on imports to meet domestic edible
oil requirement.
 However, India out of its total soy meal production of around
6.5 to 7 million tonnes, exports around 3.5 million tonnes with
Vietnam, Japan, Thailand, Indonesia, Greece being its major
importers.

8. INDIA IN WORLD SOY
INDUSTRY (2009-2010)
GLOBAL INDIA( MT) % SHARE (MT)
(MT)
Soybean production 225.3 7.9 3.5
Soy Oil production 37.5 1.2 3.2
Soy Oil imports 10.0 1.6 16.0
Soy Oil exports 9.0 0 0
Soy oil consumption 37.5 2.8 7.5
Soy Meal 160.3 5.4 3.4
production
Soy Meal exports 56.0 3.5 6.3
Soy Meal imports 52.0 0 0
Soy Meal 159.2 1.9 1.2
consumption

9. WORLD SOY MARKETS
 Chicago Mercantile Exchange, which acquired Chicago
Board of Trade - the world's oldest soy futures market.
 Dalian Commodity Exchange - trades the most liquid
soybean contracts in the world.
 Argentina and Brazil - determine the physical prices

10. MAJOR TRADING
CENTRES
 Indore,
 Ujjain,
 Dewas,
 Mandsore in Madhya Pradesh,
 Akola,
 Sangli,
 Nagpur in Maharashtra,
 Kota in Rajasthan.

11. FACTORS INFLUENCING
MARKET
 Weather at all the producing centers, domestic and
international.
 Competitive crops used for animal
feed, viz., maize, jowar, bajra.
 Government policies such as Minimum Support Price (MSP)
fixed for the crop, import duty & export of its derivatives and
stock limits, Pests and diseases.
 Infections affecting poultry and cattle like bird flu.

12. Contd..,
 Demand for Soybean from Oil extractors and Farmers.
 The crush margin between meal, oil and seed.
 The supply-demand and price scenario of competitive
oils, viz. palm oil.
 International soy price movement at CBOT.
 International market price for soy meal export

13. CONTRACT
SPECIFICATIONS
 SOY BEAN A :
Contracts expiring in the months of
September, October, November, December and January.
 SOY BEAN B:
Contracts expiring in the months of
February, March, April, May, June, July and August.

14. TYPE OF CONTRACT Futures contract
NAME OF COMMODITY Soy Bean
TICKER SYMBOL SYBEANIDR
TRADING SYSTEM NCDEX Trading system
BASIS Ex-warehouse Indore
UNIT OF TRADING 10 MT

15. DELIVERY UNIT 10 MT
MAXIMUM ORDER SIZE 500 MT
QUOTATION/BASE VALUE Rs per quintal
TICK SIZE 50 Paisa
QUALITY SPECIFICATION Moisture - 8 to 10%
Foreign matters – 2 to 4%
Damaged seed – 2 to 5%
Green seed – 7%
QUANTITY VARIATION +/_ 2%

16. DELIVERY CENTER Indore
ADDITIONAL DELIVERY Akola, Nagpur(Maharashtra),
CENTRE Itarsi, Sagar(MP) and
Kota(Rajasthan).
TRADING HOURS Mondays through Fridays :10:00
AM to 5:00 PM.
Saturdays : 10:00 AM to 2:00 PM
DUE DATE/EXPIRY DATE 20th day of the delivery month
DELIVERY SPECIFICATION The sellers should give their
intention to give delivery at least 5
days before the maturity of the
contract
DELIVERY LOGIC Seller’s Option

17. CLOSING OF CONTRACT All outstanding positions will be
closed out at the final settlement
price
OPENING OF CONTRACTS Trading in any contract month
will open on the 10th day of the
month
PRICE LIMIT Daily price fluctuation limit is +/_
3%
FINAL SETTLEMENT PRICE Simple average of spot prices of
last three days.
POSITION LIMITS Member level: 1,50,000 MT
Client level: 30,000 MT

18. CONTRACT LAUNCH MONTH CONTRACT EXPIRY MONTH
March 2011 August 2011
April 2011 September 2011
May 2011 October 2011
June 2011 November 2011
July 2011 December 2011
August 2011 January 2012
September 2011 February 2012
October 2011 March 2012
November 2011 April 2012
December 2011 May 2012
January 2012 June 2012
February 2012 July 2012
March 2012 August 2012
April 2012 September 2012
May 2012 October 2012
June 2012 November 2012
July 2012 December 2012

19. SPOT PRICES
PRICE DATE PRICE TIME PRICE DELIVERY
CENTRE
12:00 2380.00
02.09.2011 15:30 2380.00
12:00 2363.00
05.09.2011 15:30 2363.00
12:00 2350.00
06.09.2011 15:30 2354.00 INDORE
12:00 2356.00
07.09.2011 15:30 2359.00
12:00 2370.00
08.09.2011 15:30 2370.00
09.09.2011 12:00 2373.00
15:30 2378.00

20. FUTURE PRICES
Date Prev Open High Low Close Volume Traded Deliver
Close price price price price (tonnes) value y
price (Rs.inla centre
khs)
02.09.11 2410.50 2409.00 2412.00 2387.00 2391.50 32450 7786.11
03.09.11 2391.50 2399.00 2399.00 2371.00 2383.00 22500 5355.73
INDORE
05.09.11 2383.00 2382.00 2382.00 2358.00 2372.00 28450 6741.56
06.09.11 2372.00 2360.00 2372.00 2353.00 2367.00 24510 5789.71
07.09.11 2367.50 2375.00 2388.00 2366.00 2369.00 16400 3895.49
08.09.11 2369.00 2370.00 2393.00 2364.00 2382.50 20990 92780