Fundamental Analysis

July Soybean futures closed slightly higher on account CBOT soybean futures overnight gains and short covering at week end.

Argentina's Agriculture Ministry raised its estimate of its 2009/10 soybean crop to a new record of 54.0 million tonnes, up from their previous estimate of 53.5 million.

The USDA will release its latest Export Sales report on Friday. Sales need to average just 58,300 tonnes each week to reach the USDA's current export projection for the old crop season. Traders are expecting this week's total to come in below last week's combined total of 550,600 tonnes for soybeans.

Spread between July and August contract is Rs-12 against previous day of Rs -6.50 per 100 Kg.

Technical Analysis

Prices closed below its 10 Day and its 20 Day EMA, which indicates bearish market sentiments.

14-Day RSI is at 42.47, which is in neutral region.

Outlook

Soybean prices are expected to open slightly higher on firm soybean futures at e-cbot, but it may come down on poor export demand of soy meal. However, progress of monsoon and better carry over stock this year as compared to last year may drag prices down in medium term. Higher global soybean production estimate this year as compared to last year in favour of bears.

Courtesy: Angel Commodities

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