A volatile trade was observed on Friday as the morning hours experienced weakness while the later half of the trading day observed short covering. There is a wide gap in the spot and futures prices and as the time of expiry will come nearer the gap is expected to narrow down. Spot prices are still trading at higher levels and futures prices are at a discount of approximately 100 rupees.
International sentiments are still sideways due to uncertain near term weather and its likely impact on US soybean is not clear. In fact, weather is not too bad as it can cause any significant adverse impact on soybean growth. So bulls are rather a little bit cautious and market is lacking any potential factor which can cause market to see trend reversal.
Thus, medium term sentiments are still weak. The crop maturity level is lagging behind in the Midwestern growing area of US. CBOT soybean futures have got some support on this factor but no support to the international market is there due to lack of any fresh news.
On Saturday prices are expected to trade in both directions and prices may come down by last hour of the trade due to profit booking.Courtesy: Religare Commodities
