Soyabean yesterday we have seen that market has moved -1.35% due to profit booking amid weakness in spot market demand.
Concerns over soybean production in Brazil and Argentina will keep international market firm. Demand from China is also likely to remain strong for soybean this year. Argentina's soybean output is estimated at 43.5 million tonnes, lower than many private forecasts.
Brazil is expected to produce 69.23 million tonnes, down from 71.75 million tonnes estimated in January.
In India too, the crushers need more soybean in the near future to meet the soy oil domestic demand and soy DOC export commitments. Despite the rains in many parts of Argentina and Brazil there is still worry about the production prospects which will not allow prices to fall sharply.
At the Indore spot market in top producer MP, soybean dropped -1 Rs to 2587Re per 100 kgs. Market has opened at 2637 & made a low of 2585 versus the day high of 2642.
The total volume for the day was at 106170 lots and the open interest was at 164450.Support for soyabean is at 2573 below that could see a test of 2550. Resistance is now seen at 2630 above that could see a resistance of 2664.
Trading Ideas:
Soybean trading range for the day is 2550-2664.
Soybean ended lower due to profit booking amid weakness in spot market demand
Concerns over soybean production in Brazil and Argentina will keep international market firm
NCDEX accredited warehouses soyabean stocks gained by 445 tonnes to 45919 tonnes.
At the Indore spot market in top producer MP, soybean dropped -1 Rs to 2587Re 100 kgs.
Courtesy: Kedia Commodities
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