Soybean may go up in line with overseas cues

Fundamental Analysis
Soybean (NCDEX September Contract) futures closed slightly lower on higher sowing acreage and better monsoon rain during the last week.

The president of the Solvent Extractors'' Association of India has assured that India’s oil meals exports will continue.

The Hon’ble Minister as well as the Secretary assured SEA that there are no plans either to ban or restrict the exports of oil meals.

This follows after talks in the market that government may ban or restrict the exports of oil meals.

However, El Nino Southern Oscillator Index increased in strength from -2 to -4 over the latest week, which supports a strengthening or continuation of an El Nino event. El Nino is believed to contribute to drought in India.

Technical Analysis
Prices (NCDEX September Contract) closed lower at Rs.2333.00 per quintal on Saturday; its high of the day was 2343.00 levels and touched a low of 2322.00 levels.

Prices closed below its 10 Days & its 20 Days EMA. 14-Days RSI is at 48.88. Prices are likely to trade higher with short-term and support and resistance as follows:

Outlook
Soybean prices are expected to trade slightly higher in tandem with firm overseas market and lower stock of soybean (for short term). However, (for long term) improved monsoon rains, lower export demand of soy meal and higher sowing acreage this year till date as compared to last year and globally soybean production is estimated higher as compared to last year also in favour of bears in the market.

Courtesy: Angel Commodities