NCDEX Soyabean under short covering; Support seen at 3780
Commodity Online | May 21 2020
UPDATED 11:00:47 IST

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Technically Soyabean market is under short covering as market has witnessed drop in open interest by 0.08% to settled at 77940 while prices up 6 rupees.

Now NCDEX Soyabean is getting support at 3780 and below same could see a test of 3757 levels, and resistance is now likely to be seen at 3818, a move above could see prices testing 3833.

Soyabean yesterday settled up by 0.16% at 3804 as the market waited for signs of fresh buying interest from China.

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.

The data showed that the exports of soyabean meal fell by nearly half, mainly due to disparity in export and better realisation in domestic market, the SEA noted.

While the trade has pinned hopes on the increased acreage this year for the oilseed, it is also counting on government assistance in terms of hiking customs duty on import of edible oils.

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 3757-3833.
--Soyabean gained as the market waited for signs of fresh buying interest from China.
--Brazil soybean exports seen at 7.2 mln tonnes in second half of May
--Normal monsoon outlook for this kharif season has brightened the prospects for soyabean cultivation starting next month.
--At the Indore spot market in top producer MP, soybean dropped 9 Rupees to 3971 Rupees per 100 kgs.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 2 11200.00
Coconut Oil 0.1 18900.00
Arecanut 266 39771.00
Sugar 197 3282.00

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