Fresh buying seen in Soyabean; Support seen at 3257
Commodity Online | September 20 2016
UPDATED 14:55:14 IST

NCDEX Chana under fresh buying; Support seen at 5056

MCX Cotton under fresh buying; Support seen at 17950

NCDEX Jeera under fresh selling; Resistance seen at 14140

NCDEX Turmeric under fresh selling; Support seen at 5844

MCX Mentha Oil likely to move in a range of 935.3-958.9

Soyabean on NCDEX settled up by 1.48% at 3300 on weak sowing data last week and on improved demand in global market following upbeat United States weekly soybean sales data. As on Sep 16, soybean sowing was recorded at 11.47 million hectare compared to 11.62 million hectare. Further, higher export data reported by Soybean Extractors Association of India and United States Department of Agriculture (USDA) reported improved export data. India's exports of soybean oilmeal jumped two fold to 1,726 tons in August compared to 768 tons for the corresponding period a year earlier, data from SEA of India showed.

USDA reported gain of 34.56% in the week ended to Sep 8 compared to the same period a year ago, data showed. US sale total 22.316 million tons of soybean in the past week compared to 16.584 million tons in the same period a year ago, data showed. Anticipating a good crop this season, a six-member delegation of the industry body, Soybean Processors Association of India (SOPA), will be touring five countries next week to promote Indian soybean meal exports. High prices in the domestic market has thrown Indian oilmeal almost out of the international market. During the April-August 2016 period, India’s soybean meal exports recorded a 62% decline to 63,522 tonne from 168,054 tonne in the same period last year.

At the Indore spot market in top producer MP, soybean gained 40 rupee to 3513 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 7.9% to settled at 54610 while prices up 48 rupee, now Soyabean is getting support at 3257 and below same could see a test of 3214 level, and resistance is now likely to be seen at 3326, a move above could see prices testing 3352.

Trading Ideas:
--Soyabean trading range for the day is 3214-3352.
--Soyabean gained on weak sowing data last week and on improved demand in global market following upbeat US weekly soybean sales data
--As on Sep 16, soybean sowing was recorded at 11.47 million hectare compared to 11.62 million hectare.
--Brazil soybean production for 2016/17 is forecast at 101.0 million metric tons compared to 96.5 million last year.
--At the Indore spot market in top producer MP, soybean gained 40 rupee to 3513 rupee per 100 kgs.

Courtesy: Kedia Commodities