NCDEX Soyabean under long liquidation; Support seen at 3724
Commodity Online | April 16 2019
UPDATED 10:30:28 IST

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Technically Soyabean market is under long liquidation as market has witnessed drop in open interest by 4.09% to settled at 155620 while prices down 23 rupees.

Now NCDEX Soyabean is getting support at 3724 and below same could see a test of 3692 level, And resistance is now likely to be seen at 3799, a move above could see prices testing 3842.

Soyabean on NCDEX settled down by 0.61% at 3755 on profit booking after prices gained due to buying by millers in physical on demand hope for soymeal. Traders are cautious and waiting for the 2019 monsoon forecast, which may be announced early next week.

The USDA in its monthly report trimmed its forecast of U.S. 2018/19 soybean stocks to 895 million bushels, down from 900 million in March and roughly in line with trade estimates. USDA raised its estimate of Brazil's 2018/19 soybean harvest to 117 million tonnes, up from 116.5 million in March and at the top end of a range of analyst expectations Meanwhile, USDA released its planting prospective report for the year 2019- 20.

As per USDA planting prospects reports Soybean planted area for 2019 is estimated at 84.6 million acres, down 5 percent from last year. As per the Second Advance Estimates for 2018-19 crops released by Ministry of Agriculture, Soybean production is estimated higher by 20 per cent at 136.89 lakh tonnes as compared to 113.90 lakh tonnes produced during 2017-18.

As per SOPA, Soybean production of India may rise by 38 per cent to 11.48 million tonnes this year against 8.36 million tonnes in last year record as supported by higher yield, favourable weather condition in the major soybean crop growing states like Madhya Pradesh, Maharashtra and Rajasthan.  At the Indore spot market in top producer MP, soybean dropped  30 Rupees to 3879 Rupees per 100 kgs.

Trading Ideas:
--Soyabean trading range for the day is 3692-3842.
--Soyabean dropped on profit booking after prices gained due to buying by millers in physical on demand hope for soymeal.
--USDA in its monthly report trimmed its forecast of U.S. 2018/19 soybean stocks to 895 million bushels, down from 900 million in March.
--Soybean production is estimated higher by 20 per cent at 136.89 lakh tonnes as compared to 113.90 lakh tonnes produced during 2017-18.
--At the Indore spot market in top producer MP, soybean dropped  30 Rupees to 3879 Rupees per 100 kgs.

Courtesy: Kedia Commodities

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