Support seen at 3097 for NCDEX Soyabean
Commodity Online | October 17 2016
UPDATED 11:15:33 IST

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Soyabean on NCDEX settled up 0.13% at 3113 on hopes of higher demand from crusher at lower level despite of higher global supply. After Madhya Pradesh, excess rainfall in Maharashtra is playing havoc for soybean crop. Certain regions of Maharashtra especially Marathwada, which have been big producer of soybean are facing flood like situation.

In Marathwada district of Maharashtra soybean crop has suffered due to moisture stress as during the flowering stage, for about 20-25 days there was no rainfall. This has affected productivity adversely. In Rajasthan, area under soybean cultivation has been reduced by 10% from the figure reported by the government because substantial area was seen converted to black gram, moong, maize etc. as compared to last year. USDA hiked 2016-17 United States soybean production forecast for October and also raised its forecast for ending stockpiles, the department said in its World Agriculture Supply and Demand Estimates report.

The USDA hiked US, the world's biggest bean grower, production estimates to 116.2 million tons in October compared to 114.3 in previous month and 106.9 a year ago. USDA also raised its forecast for 2016-17 US soybean ending stockpiles to 395 million bushels in October compared to 330 million bushels in the previous month and 197 million bushels a year ago.

New crop arrivals increased to 670,000-700,000 bags across India as compared to nearly 200,000 bags during previous session. Technically market is under short covering as market has witnessed drop in open interest by -0.46% to settled at 118230 while prices up 4 rupee, now Soyabean is getting support at 3097 and below same could see a test of 3081 level, and resistance is now likely to be seen at 3126, a move above could see prices testing 3139.

Trading Ideas:
--Soyabean trading range for the day is 3081-3139.
--Soyabean prices ended with gains on hopes of higher demand from crusher at lower level despite of higher global supply.
--In Marathwada district of Maharashtra soybean crop has suffered due to moisture stress as during the flowering stage.
--In Rajasthan, area under soybean cultivation has been reduced by 10% from the figure reported by the government.
--At the Indore spot market in top producer MP, soybean gained  5 rupee to 3040 rupee per 100 kgs.

Courtesy: Kedia Commodities