NCDEX Soyabean under long liquidation; Support seen at 3718
Commodity Online | June 29 2020
UPDATED 11:00:32 IST

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Technically Soyabean market is under long liquidation as market has witnessed drop in open interest by 4.23% to settled at 47315 while prices down 34 rupees.

Now NCDEX Soyabean is getting support at 3718 and below same could see a test of 3691 levels, and resistance is now likely to be seen at 3784, a move above could see prices testing 3823.

Soyabean yesterday settled down by 0.9% at 3746 as pressure seen as planting of soyabean, has picked up with monsoon making timely progress in parts of Central India, the main growing region.

Data released by the Agriculture Ministry shows soyabean was planted on about 3.52 lakh hectares, till June 19, as against 0.53 lakh ha in the same period last year.

The Soyabean Processors Association of India (SOPA), the apex trade body, sees good prospects for the oilseed on anticipated good rains this year.

“As of today, expecting the area under soyabean to increase by about 10 per cent,” said DN Pathak, Executive Director, SOPA. Farmers in parts of Maharashtra are expected to switch from cotton to soyabean this year.

China's soybean imports from top supplier Brazil soared in May to their highest in two years, according to customs data, as backed-up cargoes that were delayed by bad weather in Brazil cleared customs.

China, the world's top soybean importer, brought in 8.86 tonnes of Brazilian soybeans in May, the highest since May 2018 and up 41% from last year's 6.3 million tonnes, data from the General Administration of Customs showed.

Brazil imports were also up 49% from 5.939 million tonnes in April. Imports from the United States were 491,697 tonnes in May, down nearly 50% from May 2019 and the smallest monthly tally since January 2019.

Trading Ideas:
--Soyabean trading range for the day is 3691-3823.
--Soyabean prices dropped as pressure seen as planting of soyabean, has picked up with monsoon making timely progress in parts of Central India
--Soyabean procurement is expected to be up by 23.4% in Karnataka, with last year's procurement 2,95,000 mt to go as high as 12,06,000 mt.
--Soybean meal exports were recorded at 72,554 tonnes for the period, as against 94,101 tonnes in the same months last year.
--At the Indore spot market in top producer MP, soybean dropped 25 Rupees to 3732 Rupees per 100 kgs.

Courtesy: Kedia Commodities