MUMBAI (Commodity Online): Soybean futures market recovered from losses seen in the past two days mainly because of short covering and fresh buying.

International market sentiments remained also positive. Please note that in India, futures market will remain close on Friday and Saturday.

Thus traders avoided to make fresh selling positions ahead of holidays. So far as fundamentals are concerned, rains are good enough in almost all parts of the country barring few states which has brightened the kharif crop production prospects.

Soybean, a major kharif oilseeds crop is mainly grown in MP and Maharashtra. Trade bodies opine that this year production may surpass the last year’s figure. Country is also having a good amount of carry forward stock.

These are some bearish cures from market point of view. However, the soybean DOC demand has remained good enough to support the prices. In US also soybean crop is in good condition and the marker arrivals will start by mid September.

For short term, the soybean export demand is good enough to support the prices. In India, physical market activities are steady with moderate arrivals. Soy meal exports from India rose sharply which may give support to the market in near future.

In August, soy meal export rose by over 38 per cent to 1.7 lakh tones in comparison to the same month last year as per the Soybean Processors Association of India (SOPA).

Courtesy: Religare Commodities

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