The soybean futures traded on a positive note on Saturday retreating from its previous two days fall on ac-count of short covering and taking cues from Friday’s gains in CBOT soy market.

Market also reacted to week-ly sowing data released by central farm ministry on Friday which showed soybean sowing is lagging behind compared to last year.

However, the rise was limited mainly because of higher arrivals to the spot market and poor buying interest from crushers.

The active July contract NCDEX soybean futures tested an intraday high of Rs.1908 per quintal from a low of Rs.1893 per quintal and settled at Rs.1904 per quintal.

Outlook

The soybean futures are projected to trade on a positive note during early hours of the day on extended short covering and taking cues firm eCBOT soy market, but, sharp rise may not be seen because of poor buying in-terest

Since the prices have fall sharply last week, we can expect a smart recovery during the day
Slower pace of soybean sowing is likely to provide mild support to the market

According to latest sowing data available, soybean has been sown in an area of 2000 hectares as on 18th June against 44,000 hectares in the same period a year ago

However, poor buying interest from crushers is likely to limit the gains during the day

The open interest in July contract fell by 0.15% to 146290 tonnes and volume fell by 43% to 20450 tonnes

The spot market remained weak due to poor buying and higher supplies in the market

The spot price of soybean quoted at Rs.1840-1860 per quintal in Indore

On global front, eCBOT soybean futures are trading slightly on a positive note on reports of tight old crop supply and delay in final sowing because of heavy rain in Midwest region of US

The active July contract eCBOT soybean futures are trading at $9.68 per bushel, up by 0.7%

Courtesy: Angel Commodities

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