The NCDEX soybean futures traded on a negative note on Thursday on account of profit sales ahead of expiry of March contract.

Weak trend in overseas market and bearish domestic fundamental factors such as weak export demand for soy meal and ample inventories of edible oils added bearish sentiment to the market.

The sharp decline in Malaysian palm oil futures has had a strong pressure on the market. The spot markets remained subdued because of sluggish demand.

The most active April contract soybean futures on NCDEX made an intraday low of 1962.50 levels from a high of 1992 levels and settled at 1969 levels, declining by 0.63%.

Outlook

The soybean futures are projected to traded in a range bound level with downward bias based on bearish fundamental factors

The lack of active export orders for soy meal from India has been hindering the uptrend in the soybean futures prices

Crushers are not actively buying soybeans from the spot market because of disparity between soybean and its end products

Ample stocks of edible oil in India is also likely to limit the gains

The spot prices remained lower at Rs.1940-1950 per quintal for mandi delivery and Rs.2000-2050 per quintal for plant 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 1.15% to 150490 tonnes from 152240 tonnes and volume increased by 4.36% to 56920 tonnes from 54540 tonnes

The CBOT soybean futures ended marginally higher paring earlier losses due to position squaring and taking cues from firm crude oil market

However, bearish weekly export sales limited the gains

According to USDA, during March 5-11, the soybean exports from US were 214,100 tonnes

The active May contract soybean futures on CBOT traded in the range of $9.47 ¼ - $9.62 ½ per bushel

Courtesy: Kedia Commodities

World events analysis and how they affect Markets

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook