The NCDEX soybean futures traded on a positive note on Saturday extending its previous gains on account of extended short covering supported by firm overseas market.

However, the rise was limited because of bearish domestic fundamental factors such as weak export demand for soy meal and ample inventories of edible oils.

The spot markets improved marginally on bargain buying. he most active April contract soybean futures on NCDEX traded in the range of 1982-2020 levels and settled at 2006 levels, gaining by 0.53%.

Outlook

The soybean futures are projected to trade on a positive note during the day due to follow through buying in the futures market

The investors and traders are buying futures on speculation that demand might revive in near term
Domestic demand for soy meal is likely to support the prices

However, the export demand is still weak because of higher price compared to other countries
Crushers are not actively buying soybeans from the spot market because of disparity between soybean and its end products

The spot prices remained improved to Rs.1990-2000 per quintal for mandi delivery

The soy meal Ex-Indore price quoted at Rs.17500-17600 per tonne and FAS-Kandla price quoted at $383-384 per tonne

The open interest in most active April contract fell by 2.79% to 143430 tonnes from 147550 tonnes and volume fell by 34.81% to 54540 tonnes from 83660 tonnes

The eCBOT soybean futures are trading on a negative note based on bearish fundamental factors like record production in Brazil and Argentina

Courtesy: Kedia Commodities

World events analysis and how they affect Markets

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook