NCDEX Soyabean under long liquidation; Support seen at 3722
Commodity Online | May 26 2020
UPDATED 11:00:54 IST

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Technically  Soyabean market is under long liquidation as market has witnessed drop in open interest by 4.38% to settled at 74180 while prices down 32 rupees.

Now NCDEX Soyabean is getting support at 3722 and below same could see a test of 3695 levels, and resistance is now likely to be seen at 3772, a move above could see prices testing 3795.

Soyabean yesterday settled down by 0.85% at 3750 as normal monsoon outlook for this kharif season has brightened the prospects for soyabean cultivation starting next month.

Pressure also seen tracking weakness in overseas prices on concerns that the U.S. government's rhetoric about China's response to the coronavirus pandemic will dampen Chinese demand for U.S. supplies.

The U.S. Department of Agriculture said weekly soybean export sales were 1.669 million tonnes, topping forecasts that ranged from 800,000 tonnes to 1.6 million tonnes.

Brazilian soybean exports between May 17 and May 31 will total an estimated 7.2 million tonnes, with the total for the month pegged at 14.7 million tonnes based on the shipping lineup.

Normal monsoon outlook for this kharif season has brightened the prospects for soyabean cultivation starting next month.

Meanwhile, the trade body has estimated exports for the year 2019-20 (October 2019 to September 2020) to fall by one lakh tonnes to 6 lakh tonnes.

The USDA confirmed private sales of 396,000 tonnes of U.S. soybeans to China, a day after reporting sales of an additional 136,000 tonnes to the world's top soy importer.

In the May’20 WASDE report by USDA, the US 2020/21 soybean area is projected at 83.5 million acres compared to 76.1 million acres in 2019/20. US soybean yield for 2020/21 is projected at 49.8 bushels per acre vs 47.4 bushels per estimated in 2019/20.

Trading Ideas:
--Soyabean trading range for the day is 3695-3795.
--Soyabean dropped as normal monsoon outlook for this kharif season has brightened the prospects for soyabean cultivation starting next month.
--Pressure also seen tracking weakness in overseas prices on concerns that the U.S. government's rhetoric about China's response pandemic will dampen Chinese demand.
--Weekly soybean export sales were 1.669 million tonnes, topping forecasts that ranged from 800,000 tonnes to 1.6 million tonnes – USDA
--At the Indore spot market in top producer MP, soybean dropped 39 Rupees to 3922 Rupees per 100 kgs.

Courtesy: Kedia Commodities

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