NCDEX Soyabean under short covering; Support seen at 3748
Commodity Online | July 03 2020
UPDATED 11:00:05 IST

MCX Gold under short covering; Resistance seen at 49465

MCX Silver under long liquidation; Support seen at 65712

MCX Crude Oil under fresh selling; Support seen at 3781

MCX Natural Gas under long liquidation; Support seen at 176.7

MCX Copper under fresh selling; Resistance seen at 614.8

Technically Soyabean market is under short covering as market has witnessed drop in open interest by 8.35% to settled at 34245 while prices up 12 rupees.

Now NCDEX Soyabean is getting support at 3748 and below same could see a test of 3729 levels, and resistance is now likely to be seen at 3788, a move above could see prices testing 3809.

Soyabean yesterday settled up by 0.32% at 3768 on short covering after prices seen pressure 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.

Soyabean farmers in parts of Maharashtra have started reporting early germination failure, which has put them in a fix. Growers in some parts of the state have blamed inferior quality of seed, while in some cases, insufficient soil moisture is being blamed.

Agriculture Commissioner Suhas Diwase confirmed the problem but said it is restricted to some talukas of particular districts. Timely onset of the monsoons had pushed farmers to hasten sowing activities, especially in Marathwada and Vidarbha.

Trading Ideas:
--Soyabean trading range for the day is 3729-3809.
--Soyabean gained on short covering after prices seen pressure as planting of soyabean, has picked up with monsoon making timely progress
--Soybean meal exports were recorded at 72,554 tonnes for the period, as against 94,101 tonnes in the same months last year.
--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.
--At the Indore spot market in top producer MP, soybean gained  30 Rupees to 3734 Rupees per 100 kgs.

Courtesy: Kedia Commodities

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