Brochures_SoyBean.pdf

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Soy Bean



Soybean is an important global crop and processed soybean is the largest source of protein feed and second largestsource of vegetable oil in the world.The major portion of the crop is solvent-extracted with hexane to yield soy oil and soymeal and It is estimated that above85% of the crop is crushed worldwide.Soymeal is widely used in the animal feed industry.A very small proportion of the crop is consumed directly by humans and several soybean products appear in a largevariety of processed foods. Soybeans derivatives are found in hundreds of human foods, animal feeds and industrial

Products.

The cultivation of soybean is successful in climates with hot summers, with temperatures between 20°C to 30°C beingoptimum. It can grow in a wide range of soils, with optimum growth in moist alluvial soils with a good organic content.Modern soybean varieties generally reach a height of around 1 m (3 ft), and take about 80-120 days from sowing to

harvesting.

2

World Soybean Production

Oil CrushingStock /

InventoriesHuman Foods

Soy Meal Soy Oil

Food Proteins Animal Feed

USES OF SOYBEANUSES OF SOYBEAN

GLOBAL CROP CALANDERGLOBAL CROP CALANDER

INTRODUCTIONINTRODUCTION

United States

Brazil

Argentina

China

India

Paraguay

Canada

Ukraine

Uruguay

Bolivia

83.2

73.5

53.0

14.0

9.8

7.5

4.0

1.9

1.8

1.6

Top 10 Soybean Producers in year 2011

(in Million MT)Country Production

257.5WORLD TOTAL



INDIA SOYBEAN PRODUCTION (IN MN MT)INDIA SOYBEAN PRODUCTION (IN MN MT)

MAJOR PRODUCTION STATES:

DOMESTIC SCENARIO:

MAJOR PRODUCTION STATES:

DOMESTIC SCENARIO:

Source: BP's Stat istical Review o f World Energy 2011

GLOBAL SOYBEAN TRADE PROFILE

3

USA

Brazil

Argentina

China

India

Others

32%

28%

22%

6%

4%

8%

61% of the beans produced are used domestically and rest isexported.

Approximately half of the bean production (54%) is used fordomestic purpose and rest is exported

More than 1/8th of the production is consumed domesticallyand rest is exported.

Most of the beans produced are crushed and used for meeting thegrowing demand for soy meal and soy oil. Imports are negligible.

Production contributes only 1/3rd of the total consumption. 65% of the total domestic consumption is met by imports

Country Trade % Trade profile

GLOBAL SOYBEAN TRADE PROFILE

Name of StateMadhya PradeshMaharashtraRajasthanAndhra PradeshKarnatakaChattisgarh

Rest of India

Share (%)60%27%8%2%2%2%

0.12%

Attribute

Area Harvested (Mn Hect.)

Beginning Stocks (Mn MT)

Production (Mn MT)

Total Supply (Mn MT)

Crush (Mn MT)Total Dom. Cons. (Mn MT)

Ending Stocks (Mn MT)

Total Distribution (Mn MT)

2007-08

8.8

0.2

9.5

9.7

8.49.5

0.1

9.7

2008-09

9.6

0.1

9.1

9.2

7.28.4

0.8

9.2

2009-10

9.6

0.8

9.7

10.5

7.58.8

1.7

10.5

2010-11

9.4

1.7

9.6

11.3

9.410.7

0.6

11.3

2011-12

9.6

0.6

9.8

10.4

8.810.1

0.3

10.4



4

FACTORS INFLUENCING THE PRICESFACTORS INFLUENCING THE PRICES

Weather at all the producing centers, domestic and international. The pod bearing period, being the most crucial The area planted, determined by the price of soybean against that of 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 catt le like bird flu Demand for Soybean from Oil extractors and Farmers

The crush margin between meal, oil and seed The supply-demand and price scenario of competit ive oils, viz. palm oil International soy price movement at CBOT, being the major international reference market International market price for soy meal export

Delivery Logic

Position limits

Additional Delivery

Center

Akola, Nagpur,(Maharashtra);Itarsi, Sagar (MP); and Kota (Rajasthan)

Location Premium/Discount as notified by the Exchange from t ime to t ime.

Quality Allowance

(for Delivery)

Special Margin

Final Settlement Price

Delivery center Indore (within a radius of 50 km from the municipal limits)

Quantity variation +/- 2%

Name of Commodity SOY BEAN

Ticker Symbol SYBEANIDR

Trading System

Basis

NCDEX Trading System

Ex-tank, Indore inclusive of all taxes

Unit of trading 10 MT

Delivery unit 10 MT

Quotation/base valueRs per quintalTick size 50 Paisa

CONTRACT SPECIFICATIONS

Seller's Option

Price limits

Daily price fluctuation limit is (+/-) 3%. If the trade hits the prescribed daily price limit there will be a coolingoff period for 15 minutes. Trade will be allowed during this cooling off period within the price band.Thereafter the price band would be raised by (+/-) 1% and trade will be resumed

If the price hits the revised price band (4%) again during the day, trade will only be allowed within therevised price band. No trade / order shall be permitted during the day beyond the revised limit of (+ / -) 4%

In case of additional volatility, a special margin at such other percentage, as deemed fit, will be imposed inrespect of outstanding positions, which will remain in force as long as the volatility exists, after which thespecial margin may be relaxed.

500 MT

Member level: 150,000 MT or 15 % of market open interest, whichever is higherClient level: 30,000 MTThe above limits will not apply to bona fide hedgers. For bona fide hedgers, the Exchange will, on a case tocase basis, decide the hedge limits.Near month limit (Applicable from 28 days prior to expiry date)Member level: 40,000 MT or 15% of Market wide OI in near month whichever is higherClient level: 8,000 MT

The Final Settlement Price (FSP) shall be arrived at by taking the simple average of the last polled spot pricesof the last t hree trading days viz., E0 (expiry day), E-1 and E-2. In the event of t he spot prices for any one of theE-1 and E-2 is not available, the spot price of E-3 would be used for arriving at the average. In case the spotprices are not available for both E-1 and E-2, then the average of E0 and E-3 (two days) would be taken. If allthe three days' prices viz., E-1, E-2 and E-3 are not available, then only one day's price viz., E0 will be taken as

Parameter

Period

Moisture

Foreign Matter

Damaged

Green Seeds

Soybean A

(Sept-Jan)

10%

2%

2%

7%

Soybean B

(Feb-Aug)

8%

2%

2%

7%

Quality delivery with variation shall be acceptable with discount as under: Moi sture: For Soyb ean A Contracts (Sept Jan) From 10-12% accep ted at 1:1. Above 12% rejected For Soyb ean B Contracts (Feb Aug) From 8-10% accep ted at 1:1. Above 10% rejected Forei gn Matter: From 2-4% accepted at 1:1. Above 4% rejected (The term 'foreign matter' would, in-general,

mean anything other than Soy Bean e.g. sand, silica, pebbles, stalks and other seeds) Dam aged Seed: From 2-5% accepted at 2:1. Above 5% rejected Green Seed : Above 7% rejectedFree from non-edible seeds such as Mahua, Castor and Neem and any toxic substances. Should be free fromany foul odour.

Maximum Order Size

Documents

Brochures_SoyBean.pdf