Monsoon hits soybean prices
Published on July 25, 2009 12:25:22 IST
Fundamental Analysis NCDEX Aug Soybean futures opened higher on firm overseas market. However, prices could not manage higher levels and moved in a narrow range amid lack of fresh fundamentals and finally closed at 2277 levels on Friday. Good monsoon rain in major producing states like Madhya Pradesh and Maharashtra also provided support to bears in the market.
USDA’s Weekly Export Sales figures released on Thursday and it was supportive for soybean, net export sales for soybean 702,000 metric tonnes. As of July 16, cumulative soybean sales stand at 101.4% of the USDA’s forecast for 2008-09 versus 5 years average of 99.9%. Net export sales of meal were 192,700 tonnes. Sales need to average 110,000 tonnes each week to reach the USDA’s forecast. Net export sales of oil were 11,500 tonnes. Sales need to average 19,000 tonnes each week to reach the USDA forecast. The USDA announced an additional sale of 116,000 tonnes of soybean to China.
Technical Analysis Prices (NCDEX Aug Contract) closed slightly lower at Rs.2277.00 per quintal on Friday; its high of the day was 2299.00 levels and touched a low of 2266.00 levels.
Prices closed below its 10 Days & its 20 Days EMA. 14-Days RSI is at 33.63.
Prices are likely to trade sideways down with short-term and support and resistance as follows:
Outlook Soybean prices are expected to move lower on revivals of monsoon rains in major producing states like Madhya Pradesh and Maharashtra. Globally soybean production is estimated higher as compared to last year may provide support to bears.
Courtesy: Angel Commodities Explore Commodity Online Mobile Services
