Technically Soyabean market is under short covering as market has witnessed drop in open interest by 4.37% to settled at while prices up 81 rupees.
Now NCDEX Soyabean is getting support at 5422 and below same could see a test of 5287 levels, and resistance is now likely to be seen at 5645, a move above could see prices testing 5733.
Soyabean yesterday settled up by 1.48% at 5558 on short covering after prices seen pressure as higher U.S. stocks weighed on the market.
Prices fell on pressure from larger-than-expected stocks reported on Thursday by the U.S. Department of Agriculture (USDA).
There was additional pressure stemming from the ongoing U.S. harvest. 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. New season soybean has started arriving in the mandis and bulk buyers are cautious for aggressive buying before the arrival pressure builds up.
Pressure also seen following a U.S. government report that showed larger-than-expected soybean inventory.
U.S. Department of Agriculture said that Sept. 1 soybean stocks stood at 256 million bushels, down 51% from a year earlier but above a range of expectations.
At the Indore spot market in top producer MP, soybean gained 132 Rupees to 5342 Rupees per 100 kgs.
–Soyabean trading range for the day is 5426-5722.
–Soyabean dropped on the expectation that soon arrival will hit mandi.
–However downside seen limited on the news of damages due to rain in key sowing area.
–The average soybean production estimate was 4.415 billion bushels, up from USDA’s September view of 4.374 billion.
–At the Indore spot market in top producer MP, soybean gained 68 Rupees to 5760 Rupees per 100 kgs.
Courtesy: Kedia Commodities
Source: Comodity Online