NCDEX Soyabean under short covering; Support seen at 5569
Commodity Online | October 06 2021
UPDATED 11:00:52 IST

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Technically Soyabean market is under short covering as market has witnessed drop in open interest by 6.84% to settled at while prices up 114 rupees.

Now NCDEX Soyabean is getting support at 5569 and below same could see a test of 5465 levels, and resistance is now likely to be seen at 5763, a move above could see prices testing 5853.

Soyabean yesterday settled up by 2.05% at 5672 on the back of tightening inventory levels of major vegetable oils and possibility of a lower planting area in oilseeds.

The latest USDA release is slightly bearish, and as per the report the 2021/22 global oilseed supply and demand forecasts include lower production, crush, exports, and slightly higher ending stocks compared to last month.

The 2021/22 global oilseed supply and demand forecasts, as reported in the latest USDA release include lower production, crush, exports, and slightly higher ending stocks compared to last month.

Foreign oilseed production is reduced 3.6 million tons to 501.4 million, reflecting lower canola production for Canada and sunflower seed for Russia.

The USDA reported Sept. 1 soybean stocks at 256 million bushels, above the entire range of trade estimates. The USDA said U.S. processors crushed 168.2 million bushels of soybeans in August, below an average of trade estimates for 169.0 million.

The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, raised their net-long position in soybeans.

India's soybean production is estimated to be 10 million tonnes as compared to last year's 8.9 million tonnes. At the Indore spot market in top producer MP, soybean gained 256 Rupees to 5598 Rupees per 100 kgs.

Trading Ideas:
--Soyabean trading range for the day is 5465-5853.
--Soyabean gained on short covering after prices seen pressure as as higher U.S. stocks weighed on the market.
--Prices fell on pressure from larger-than-expected stocks reported by the U.S. Department of Agriculture (USDA).
--India's soybean production is estimated to be 10 million tonnes as compared to last year's 8.9 million tonnes.
--At the Indore spot market in top producer MP, soybean gained  256 Rupees to 5598 Rupees per 100 kgs.

Courtesy: Kedia Commodities

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