Technically Soyabean market is under fresh buying as market has witnessed gain in open interest by 5.16% to settled at 100700 while prices up 81 rupees.
Now NCDEX Soyabean is getting support at 3965 and below same could see a test of 3887 levels, and resistance is now likely to be seen at 4098, a move above could see prices testing 4153.
Soyabean on NCDEX settled up by 2.04% at 4042 due to scarcity in supply and shortfall in production compared to last season. As of now, the market is eyeing the arrival of soybean in the current kharif season. Soybean production due to continuous rains this year is expected to decrease by 19.391 lakh tonnes (17.7%) to 89.941 lakh tonnes as compared to last year’s final estimate.
The average productivity of soybean in the year 2019 is estimated to be 836 kg / ha as compared to 1,009 kg / ha in 2018. According to the US Department of Agriculture, farmers have harvested 62% of the soybean crop, which is lower than the current average of 78% of the year.
Government has set the minimum support price (MSP) at Rs 3,710 per quintal higher compared to last season’s MSP at Rs 3,399 per quintal. According to Government data, this year the land under soyabean cultivation was 1.14 crore hectares as against the previous year’s 1.13 crore hectares.
It has been anticipated that the production of soyabean crop in the US will drop 3 per cent to 4 per cent compared to the previous year. Despite the fact that the US, it is estimated that this year’s soyabean production will fall to 96.62 million tonne compared to last year’s production of 98.87 million tonne. At the Indore spot market in top producer MP, soybean gained 55 Rupees to 4007 Rupees per 100 kgs.
–Soyabean trading range for the day is 3887-4153.
–Soyabean prices gained due to scarcity in supply and shortfall in production compared to last season.
–As of now, the market is eyeing the arrival of soybean in the current kharif season.
–Soybean production due to continuous rains this year is expected to decrease by 19.391 lakh tonnes
–At the Indore spot market in top producer MP, soybean gained 55 Rupees to 4007 Rupees per 100 kgs.
Courtesy: Kedia Commodities
Source: Comodity Online