Technically NCDEX Soyabean is getting support at 3618 and below same could see a test of 3544 levels, and resistance is now likely to be seen at 3733, a move above could see prices testing 3774.
Soyabean on NCDEX settled up by 3.3% at 3691 amid fears of crop loss due to heavy rains. Fears of damage to standing soybean crops due to prediction of heavy rains over Madhya Pradesh pushed up prices.
IMD has issued a red alert for west Madhya Pradesh for today and Thursday. It has also warned of widespread rains with heavy-to-very-heavy showers at isolated places. Government increase MSP price by 9% or 311 rupees to 3,710 per 100 kg for 2019/20 which also helps to increase acreage this year.
As per farm ministry, acreage under soybean is 112.5 lakh ha so far, up from last year acreage of 111.5 lakh ha. Area in MP improved so as in Maharashtra. As per SOPA, the arrivals of soybean this season is 94.25 lt compared to 80 lt last year.
Soy meal exports provisionally down by 59% in July to 26,000 tonnes compared to last year. Similarly, exports in first 4-months of FY 2019/20 (Apr-Jul) are down by about 41.5% to 1.83 lt compared to 3 lt last year. In the 4th advance estimates, government increased production forecast of soybean to 137.83 lt vs 137.43 lt in 3rd estimate.
USDA kept soybean output forecast unchanged at 109 lt in 2019/20 but down 5.2% y/y. USDA increased its weekly good-toexcellent rating for the nation's soybean crop by 2% to 55%. That topped analysts' estimates for 54%. At the Indore spot market in top producer MP, soybean gained 58 Rupees to 3860 Rupees per 100 kgs.
--Soyabean trading range for the day is 3544-3774.
--Soyabean prices gained amid fears of crop loss due to heavy rains.
--European Union soybean imports in the 2019/20 season that started on July 1 had reached 2.57 million tonnes by Sept. 8, official data showed.
--EU soymeal imports had reached 3.73 million tonnes, up 24% versus the year-earlier period, while palm oil imports stood at 891,000 tonnes, down 23%.
--At the Indore spot market in top producer MP, soybean gained 58 Rupees to 3860 Rupees per 100 kgs.
Courtesy: Kedia Commodities