Commodity Online MUMBAI: Trend remains bearish in Soybean futures market due to weak buying interest. Monsoon has gathered momentum in most part of the country. This puts a bearish impact on the prices. USDA has released its soybean planting progress report on 30th June.
The new forecast for soybean planting this year is 77.483 million acres. That’s up from 75.718 million in 2008. The new 2009 forecast is also up from a March prediction of 76.024 million acres.
Remunerative international soybean prices have prompted farmers to increase the area under cultivation. Thus CBOT witnesses mixed sentiments as near month contracts are positive on tight soy stocks while far month contracts are a little bit bearish.
Start trading in commodities from as low as $50. Join nowSame is observed in India also where fall in prices is more pronounced in far month contracts while whenever market observe some upside movement then the near month contracts witness sharp upside movement. In India, physical market demand is moderate however traders say that crushing plants are believed to be short in supply in soybean.
But due to current weak trend they are waiting for prices to come down further to initiate buying. On Thursday NCDEX soybean prices are expected to show initial downward movement but later on improvement may be seen. NCDEX July contract is likely to get support near 2426 then 2408 and resistance near 2485 then 2498.
Courtesy: Religare Commodities
