Soybean to trade weak tracking CBOT

Fundamental Analysis

NCDEX Aug Soybean futures closed lower on on account lower export demand of soy meal and revival of rains in major producing states.

Weakness in overseas market also added bearish market sentiments.

Soybean futures settled lower at Dalian Commodities Exchange, China, in reaction to news that the government will begin selling soybeans (5 lakh metric tonnes) from its reserves next week for price control.

Good rains in top two soybean producing states i.e. Madhya Pradesh and Maharashtra also provided support to bears in the market.

India has completed sowing 80% of its crop area in major growing areas.

Technical Analysis

Prices (NCDEX Aug Contract) closed lower at Rs.2261.00 per quintal on Thursday; its high of the day was 2295.00 and touched a low of 2253.00 levels.

Prices closed below its 10 Days & its 20 Days EMA. 14-Days RSI is at 28.26.

Outlook

Soybean prices are expected to open lower on huge losses in soybean futures at CBOT and revivals of monsoon rains in major producing states like Madhya Pradesh and Maharashtra. For long term, prices are expected to move southwards owing to higher sowing acreage estimates for this year as compared to last year on account of better realization to farmers as compared to other crops. Globally soybean production is estimated higher as compared to last year may provide support to bears.

Courtesy: Angel Commodities

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