MUMBAI (Commodity Online): Soybean futures prices improved on Monday due to fresh buying and positive international market cues. It is to be learnt that soybean prices have recovered smartly during the last week on short covering. In fact, prices fell sharply during the last one and half months. Domestic physical demand is still sideways.
International sentiments have also remained weak until past few days. Chinese demand is slow these days ahead of their lunar New Year Holidays. Further imported soybean is believed to be ample till March 2010. Harvesting is progressing well in Brazil and it is expected to harvest nearly 65 MMT of soybean, which is up by 11.8 % from 2008-09.
Trade sitting at the comfort of home. Start with a mere 50$Argentina is also ready with its crop to dispose off in the international market. Agencies are pegging its production near 51 million metric tons during 2009-10.
Next few days may prove crucial for Indian soybean market. It is to be seen that if market witness any recovery due to short covering and fresh buying. Today USDA will release its monthly report on supply and demand.
On Tuesday, prices are expected to remain positive. Buying on dips may prove beneficial for day traders.
Courtesy: Religare Commodities
