Fresh buying seen in NCDEX Soyabean; Resistance seen at 3301
Commodity Online | September 02 2016
UPDATED 11:52:38 IST

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Soyabean on NCDEX settled up by 0.68% at 3279 on short covering after prices dropped due to expectation of better crop this season amid favorable weather condition in most of the producing states. Reports from United States Department of Agriculture (USDA) and Soybean Processors Association of India (SOPA) showed robust crop progress reports.

In its crop progress reports United States Department of Agriculture (USDA) rated 73% on the US soybean crop in good to excellent condition, a historically high figure that was higher from the previous week. Moreover, Soybean Processors Association of India (SOPA) has rated India's 58% soybean crop of 2016-17 as in normal condition and 13% in very good condition. SOPA officials conducted an extensive crop health survey from Aug 21 to 29, 2016 in Madhya Pradesh, Maharashtra and Rajasthan, covering 41 districts and 85% of soybean area. India's soybean acreage stood at 11.2 million hectare and out of this crop over 6.5 million hectare in normal conditions while crop over 1.44 million hectare is in very good condition, the report added.

Crop over 2.03 million hectare is rated as in good conditions and over 1.2 million hectare in poor condition. Meanwhile, in 2017 farmers in United States are planning to rise soybean planting by 700,000 on robust demand in export marker, West Central Tribune reported citing producer survey note of Farm Futures magazine.

At the Indore spot market in top producer MP, soybean dropped -8 rupee to 3425 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 3.55% to settled at 54570, now Soyabean is getting support at 3253 and below same could see a test of 3226 level, and resistance is now likely to be seen at 3301, a move above could see prices testing 3322.

Trading Ideas:
--Soyabean trading range for the day is 3226-3322.
--Soyabean prices gained on short covering after prices dropped due to expectation of better crop this season.
--SOPA has rated India's 58% soybean crop of 2016-17 as in normal condition and 13% in very good ondition.
--India's soybean acreage stood at 11.2 million hectare and out of this crop over 6.5 million hectare in normal conditions.
--At the Indore spot market in top producer MP, soybean dropped  -8 rupee to 3425 rupee per 100 kgs.

Courtesy: Kedia Commodities