Soyabean on NCDEX settled up 0.65% at 3252 on crop damage concerns from United States and Brazil and on improvement in demand following upbeat US weekly soybean sales data. Reports of unfavourable weather conditions and higher export sales data from US supported yellow bean. Meanwhile in Brazil, the weather has reportedly turned dry since the latter part of August, which could impact the crop soon to be planted. United States Department of Agriculture (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. 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. 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. Technically market is under short covering as market has witnessed drop in open interest by -5.33% to settled at 50610 while prices up 21 rupee, now Soyabean is getting support at 3222 and below same could see a test of 3191 level, and resistance is now likely to be seen at 3285, a move above could see prices testing 3317.
--Soyabean trading range for the day is 3191-3317.
--Soyabean gained on crop damage concerns from United States and Brazil and on improvement in demand.
--USDA reported gain of 34.56% in the week ended to Sep 8 compared to the same period a year ago, data showed.
--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 47 rupee to 3473 rupee per 100 kgs.
Courtesy: Kedia Commodities