NCDEX Soyabean likely to move in a range of 3598-3694

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Technically NCDEX Soyabean is getting support at 3617 and below same could see a test of 3598 , and resistance is now likely to be seen at 3665, a move above could see prices testing 3694.

Soyabean on NCDEX settled down by 0.27% at 3636 on profit booking after prices gains after IMD said may receive below-average rainfall in the next two weeks with a large deficit in the soybean regions. The month of July started well in terms of good rainfall across the country.

The Southwest Monsoon was very active in Central, East and Northeast India during the first ten days of the month. And every day there was a drop of about 2-3 per cent in the countrywide rainfall deficiency.

China’s soybean imports fell 25% in from the same month last year, according to customs data, as the Sino-U.S. trade war and a severe outbreak of deadly African swine fever curb demand.

China brought in 6.52 million tonnes of soybeans in June, down from 8.7 million tonnes last year, according to data from the General Administration of Customs. China brought in 7.36 million tonnes of soybeans in May.

As per data released by SEA, soy meal exports provisionally down by 82.5% in June to 18,185 tonnes compared to last year. Government hike minimum support price by 9% or 311 rupees to 3,710 per 100 kg for 2019/20 which also helps to increase acreage this year.

As per farm ministry, acreage under soybean is 16.75 lakh ha so far, increased from 2.75 lakh ha from previous week but down about 65% from last year acreage of 48.42 lakh ha. At the Indore spot market in top producer MP, soybean dropped 9 Rupees to 3697 Rupees per 100 kgs.

Trading Ideas:
–Soyabean trading range for the day is 3598-3694.
–Soyabean dropped on profit booking after prices gains after IMD said India may receive below-average rainfall in the next two weeks.
–Government hike minimum support price by 9% or 311 rupees to 3,710 per 100 kg for 2019/20.
–China’s soybean imports fell 25% in June from the same month last year, according to customs data.
–At the Indore spot market in top producer MP, soybean dropped 9 Rupees to 3697 Rupees per 100 kgs.

Courtesy: Kedia Commodities

Source: Commodityonline.com