Market observed correction on second consecutive day on fresh selling. Physical market sentiments also remained weak as spot market prices came down by about 50 rupees per quintal from the previous day’s price quotations. Arrivals however were poor in MP. But due to lack of aggressive buying prices eased further.
On an international front, as per National Commodities Supply Corp, Brazil is expected to harvest 57.7 million metric tons of soybeans in the 2008-09 crop which is 3.8% below the 60 million tons from the 2007-08 soy crop. This may give some bullish impetus to the market however; it is also true that market has already factored in the risk premium of South America’s dry weather in Soybean Growing areas.
After a sharp rally, market witnessed some downfall in prices due to profit booking and some fresh selling. In India, Soybean meal exports during last year increased significantly. As per SOPA, press release, the export of Soybean meal during the period April'08 to December'08 registering a 53% growth over the same period last year.
The recent rally in the soybean prices could be partly attributed to this export statistics. On Friday, soybean sentiments on e-CBOT are positive. NCDEX soy prices are expected to witness volatility and movement on both sides may be observed.
Prices will get resistance near the given levels while they are not expected to trade below the given support levels. February contract is likely to get support near 1999 then 1977 and resistance near 2064 then 2080.
Courtesy: Religare Commodities
