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Thursday, July 7, 2022

NCDEX Soyabean under short covering; Support seen at 5166

Technically Soyabean market is under short covering as market has witnessed drop in open interest by 5.89% to settled at 80025 while prices up 67 rupees.

Now NCDEX Soyabean is getting support at 5166 and below same could see a test of 5105 levels, and resistance is now likely to be seen at 5274, a move above could see prices testing 5321.

Soyabean yesterday settled up by 1.3% at 5227 on short covering after prices dropped as soyabean production is estimated to rise by 14 per cent to nearly 119 lakh tonnes this year on higher sowing area and likely improvement in productivity, according to industry body SOPA.

In its estimate, Soyabean Processors Association of India (SOPA) said that the total area under soybean for the year 2021 is 119.984 lakh hectares.

The government’s area estimate is 123.677 lakh hectares. In last year’s Kharif (summer sow) season, total soyabean acreage stood at 118.383 lakh hectare. China’s soybean imports from Brazil in September fell 18% from a year earlier, customs data showed, as poor crush margins limited demand.

The world’s top buyer of soybeans brought in 5.936 million tonnes of the oilseed from Brazil last month, versus 7.25 million tonnes in the corresponding year-ago period, data from the General Administration of Customs showed.

Crushers stepped up purchases last year from top supplier Brazil as a fast recovering pig herd pushed up demand.

But their buying has slowed in recent months, as falling hog prices hit margins. U.S. soybean export sales for the week ended Oct. 7 were 2.88 million tonnes, primarily due to sales to China, beating trade expectations, according to the U.S. Department of Agriculture.

At the Indore spot market in top producer MP, soybean gained 60 Rupees to 5325 Rupees per 100 kgs.

Trading Ideas:
–Soyabean trading range for the day is 5105-5321.
–Soyabean gained on short covering after prices dropped as as soyabean production is estimated to rise by 14 per cent to nearly 119 lakh tonnes this year
–China’s soybean imports from Brazil in September fell 18% from a year earlier, customs data showed, as poor crush margins limited demand.
–Soyabean production is estimated to rise by 14 per cent to nearly 119 lakh tonnes this year
–At the Indore spot market in top producer MP, soybean gained  60 Rupees to 5325 Rupees per 100 kgs

Courtesy: Kedia Commodities

Source: Comodity Online

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