NCDEX Soyabean under short covering; Support seen at 3710
Commodity Online | April 26 2019
UPDATED 11:00:43 IST

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Technically Soyabean market is under short covering as market has witnessed drop in open interest by 5.79% to settled at 107270.

Now NCDEX Soyabean is getting support at 3710 and below same could see a test of 3694 level, And resistance is now likely to be seen at 3743, a move above could see prices testing 3760.

Soyabean settled flat on higher domestic output and weak demand from millers due to forecast of near normal monsoon forecast by IMD. Soybean arrivals for the Oct-Mar period are pegged at 77 lt, up by 23.2% on year by SOPA.

It expects availability of soybean for crushing, direct use and exports of about 101.8 lt as against 86 lt last year. SEA forecast soybean output at 102.43 lt in 2018/19, up more than 23% y/y. In the US, soybean inventories have swelled as the U.S.-China trade has hurt shipments of American soy to Chinese buyers.

China instead made purchases from Brazil. Moreover, the trade war between the US and China also disrupted US soybean to China. Brazilian consultancy Celeres expect the country’s 2018/19 soybean crop to total 115.8 mt, up 2 mt from their prior projection.

SOPA expects availably of soybean for crushing, direct use and exports about 101.8 lt as against 86 lt last year.

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 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. At the Indore spot market in top producer MP, soybean remains unchanged at 0 Rupees to 3855 Rupees per 100 kgs.

Trading Ideas:
--Soyabean trading range for the day is 3694-3760.
--Soyabean settled flat on higher domestic output and weak demand from millers due to forecast of near normal monsoon forecast by IMD.
--Soybean arrivals for the Oct-Mar period are pegged at 77 lt, up by 23.2% on year by SOPA.
--In the US, soybean inventories have swelled as the U.S.-China trade has hurt shipments of American soy to Chinese buyers.
--At the Indore spot market in top producer MP, soybean remains unchanged at 0 Rupees to 3855 Rupees per 100 kgs.

Courtesy: Kedia Commodities

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