Technically Soyabean market is under short covering as market has witnessed drop in open interest by 2.22% to settled at 62315 while prices up 19 rupees.
Now NCDEX Soyabean is getting support at 6494 and below same could see a test of 6401 levels, and resistance is now likely to be seen at 6663, a move above could see prices testing 6739.
Soyabean yesterday settled up by 0.29% at 6587 amid soaring demand for soymeal, amid transportation bottlenecks and labour shortages.
USDA’s November monthly report showed soyabean production in India has grown 8% month-on-month to 11.9 million tonnes. 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’s October soybean imports from the United States fell sharply from the previous year, customs data showed Sunday, hit by poor demand and limited exports.
China brought in 775,331 tonnes of U.S. soybeans in October, down 77% from 3.4 million tonnes a year earlier, according to data released from the General Administration of Customs.
Soybean shipments from the United States usually pick up in the fourth quarter of the year when the U.S. harvest gets underway and American beans dominate the market.
Poor crush margins and price competitive Brazilian beans, however, have curbed Chinese crushers’ appetite for American cargoes. At the Indore spot market in top producer MP, soybean dropped 59 Rupees to 6625 Rupees per 100 kgs.
Trading Ideas:
–Soyabean trading range for the day is 6401-6739.
–Soyabean gained amid soaring demand for soymeal, amid transportation bottlenecks and labour shortages.
–USDA’s November monthly report showed soyabean production in India has grown 8% month-on-month to 11.9 million tonnes.
–China’s Oct. soy imports from U.S. slump due to weak demand, hurricane
–At the Indore spot market in top producer MP, soybean dropped 59 Rupees to 6625 Rupees per 100 kgs.
Courtesy: Kedia Commodities
Source: Comodity Online
