Technically Soyabean market is under short covering as market has witnessed drop in open interest by 5.75% to settled at 76615 while prices up 326 rupees.
Now NCDEX Soyabean is getting support at 5714 and below same could see a test of 5536 levels, and resistance is now likely to be seen at 5984, a move above could see prices testing 6076.
Soyabean yesterday settled up by 5.86% at 5891 due to rise in overseas prices amid soaring demand for soymeal, amid transportation bottlenecks and labour shortages.
The U.S. Department of Agriculture confirmed private sales of 256,930 tonnes of U.S. soybeans to unknown destinations.
The announcement followed rumors this week that China was buying U.S. soybeans. The USDA also reported export sales of U.S. soybeans in the week ended Nov. 4 at 1.289 million tonnes, in line with trade expectations for 950,000 to 1.8 million tonnes. China booked 939,300 tonnes and shipped 2.34 million tonnes.
There was higher demand from oil mills amid low arrivals. The government is very cautious about reviewing the implementation of stock limits on oilseeds and edible oils, which keep prices in check in the country.
According to SEA, soymeal exports declined sharply to 5,831 tonnes in September this year from 68,576 tonnes in the same period a year ago.
Support seen after smaller-than-expected soybean harvests in the major production states of Indiana, Iowa, Kansas and Ohio sparked a surprise cut to the U.S. harvest outlook.
Despite the cut to the soybean harvest view, the domestic ending stocks projection grew because of weakening export demand for U.S. supplies.At the Indore spot market in top producer MP, soybean gained 230 Rupees to 5875 Rupees per 100 kgs.
Trading Ideas:
–Soyabean trading range for the day is 5536-6076.
–Soyabean gained due to rise in overseas prices amid soaring demand for soymeal, amid transportation bottlenecks and labour shortages.
–USDA confirmed private sales of 256,930 tonnes of U.S. soybeans to unknown destinations.
–Weekly U.S. soymeal export sales, at 278,000 tonnes, topped a range of trade expectations for 100,000 to 250,000 tonnes.
–At the Indore spot market in top producer MP, soybean gained 230 Rupees to 5875 Rupees per 100 kgs.
Courtesy: Kedia Commodities
Source: Comodity Online
