Technically Soyabean market is under long liquidation as market has witnessed drop in open interest by 12.93% to settled at 22995 while prices down 573 rupees.
Now NCDEX Soyabean is getting support at 8724 and below same could see a test of 8467 levels, and resistance is now likely to be seen at 9494, a move above could see prices testing 10007.
Soyabean yesterday settled down by 6% at 8980 on profit booking after prices gained as the delayed monsoon and the planting activity of soybean is adversely affected due to deficient rains in central India, speculation are high that there could be of drop in sowing to the tune of 10-12% expected in market.
Rainfall was fairly poor in many parts in the initial weeks of July, agriculturally the most critical month. More than the deficiency, this year’s uneven rain has been a cause of concern, agriculturally and climate-wise.
Support also seen amid tightening inventory situation in the country and amid slower pace of sowing. Government reports indicate that the weakening of rains has impacted the sowing of crops in Maharashtra, Gujarat, Rajasthan, Haryana and Punjab.
Area sown under soybean was lagging behind last year’s area by nearly 11.05 per cent. Planting of overall oilseeds, including soybean was at 11.2 million hectares, down from 12.6 million hectares the previous year.
A “break” in the monsoon has affected Kharif sowing in many parts of the country this year. However, area under soybean planting is likely to increase by 5-7% across the country this kharif season despite speculation in the market over the shortage of seeds. At the Indore spot market in top producer MP, soybean dropped -300 Rupees to 9568 Rupees per 100 kgs.
--Soyabean trading range for the day is 8467-10007.
--Soyabean dropped on profit booking after prices gained as the delayed monsoon and the planting activity of soybean is adversely affected
--USDA reported that the condition of crops unexpectedly deteriorated last week.
--The soybean crop was rated 58% good-to-excellent, down 2 percentage points from a week earlier, and behind market forecasts.
--At the Indore spot market in top producer MP, soybean dropped 300 Rupees to 9568 Rupees per 100 kgs.
Courtesy: Kedia Commodities