NCDEX Soyabean likely to trade 3141-3383 levels; Resistance seen at 3307
Commodity Online | September 21 2016
UPDATED 11:52:14 IST

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Soyabean on NCDEX settled down by -2.09% at 3231 on easing supply worries from United States following improved crop reports. According to USDA, weekly crop progress report around 73% of the soybean crops are in good to excellent conditions same as last week. However it is higher compared to prior 5 year average. According to National Oilseed processors Association, in US around 131.82 million bushels soybean was crushed.

About 46% of the US soybean crop is dropping leaves which down from 50% during the corresponding period last year but above from 43% with the 5 year average. Harvesting is reported at 4% down compared to 6% during the corresponding period last year and siightly down from 5% from 5 year average. About 73% of the newly planted US soybean crop is under good to excellent conditions which is up from 63% during the same period last year, reported in the US crop progress report dated 19 Sept. 2016. Brazil soybean production for 2016/17 is forecast at 101.0 million metric tons compared to 96.5 million last year. The harvested area is forecast at 33.7 million hectares, up 0.6 million hectares from last year.

The month-to-month decrease of 1.9 percent in USDA’s forecast soybean production is due to price changes. The 2016/17 soybean crop is not as large as was first expected due to a shift in prices now being more favorable to corn than soybeans. At the Indore spot market in top producer MP, soybean dropped -14 rupee to 3499 rupee per 100 kgs. Technically now Soyabean is getting support at 3186 and below same could see a test of 3141 level, and resistance is now likely to be seen at 3307, a move above could see prices testing 3383.

Trading Ideas:
--Soyabean trading range for the day is 3141-3383.
--Soyabean dropped on easing supply worries from United States following improved crop reports.
--According to USDA, weekly crop progress report around 73% of the soybean crops are in good to excellent conditions same as last week.
--According to National Oilseed processors Association, in US around 131.82 million bushels soybean was crushed.
--At the Indore spot market in top producer MP, soybean dropped -14 rupee to 3499 rupee per 100 kgs.

Courtesy: Kedia Commodities