Fundamental Analysis Soybean futures closed higher on account of heavy rains and possibility of floods in major palm producing area are expected to slow Malaysia’s palm oil production.
Farm minister, Mr. Sharad Pawar said that Govt. of India is unlikely to impose duty on crude palm oilas long as market prices of oilseed rule above the state set support price.
Argentina’s farmers have huge stock of soybeans, they had stocks in anticipation of higher prices in near futures. Total stocks are expected to be around 10 million tonnes this year.
However, it was 3 million tonnes last year at this time. Once the harvesting of new crop starts, it will pressurize prices in medium to long term,
Technical Analysis Prices (NCDEX Dec Contract) closed higher at 1696.50 per qtl on Friday, from its high of the day (1619.50) and touched a low of 1688.00.
Prices closed above its 10 Days & its 20 Days EMA. 14-Days RSI is at 58.17.
Prices are likely to trade sideways up with short-term and support and Resistance as follows:
Outlook Soybean prices are expected to trade range bound amidst subdued trading activity on lack of fresh fundamentals (for short term). For medium term, Soybean prices are expected to come down on record high domestic production estimates and higher stocks of soybean and plantation amidst favorable weather in Argentina may provide support to bears.
Courtesy: Angel Commodities
