Crude Oil market under long liquidation; Support seen at 4734
Silver market under fresh selling; Support seen at 37765
MCX Gold likely to trade between 29490-29788 levels
NCDEX Mustard Seed under fresh buying; Support seen at 4127
MCX Crude Palm Oil under short covering
Technically Soyabean market is under fresh buying as market has witnessed gain in open interest by 1.29% to settled at 52630 while prices up 17 rupees.
Now NCDEX Soyabean is getting support at 3381 and below same could see a test of 3370 level, And resistance is now likely to be seen at 3406, a move above could see prices testing 3420.
Soyabean on NCDEX settled up by 0.5% at 3393 tracking firmness in overseas prices and spot prices on reports of good meal exports. However, upside seen limited as area under soybean has been higher.
The area under soybean in the country increased by 10.6% at 10.9 lakh ha as of last week compared to last year sowing, according to data released by the farm ministry. Moreover, the arrivals have also declined by about 38% in July to 2.55 lakh tonnes compared to last year same month (4.11 lt).
Government has increased the export incentives on soymeal to 10% of the free on-board value from the current 7% till Mar 31. India’s soymeal exports in July are expected to hit a six-month high of around 150,000 tn, supported by increase in demand from European countries.
However, the central and western India is experiencing a dry spell during the last week of July which may affect standing soybean crop. USDA estimated soybean production Brazil at 120.5 million tonnes wherein production in US is projected at 117.30 million tonnes compare to 116.48 million tonnes of prior month.
Impact of lower export from US could be seen on global soybean inventory which has been increased up to 98.27 million tonnes from the 87.02 million tonnes projected last month. At the Indore spot market in top producer MP, soybean dropped 5 Rupees to 3550 Rupees per 100 kgs.
Trading Ideas:
–Soyabean trading range for the day is 3370-3420.
–Soyabean prices gained tracking firmness in overseas prices and spot prices on reports of good meal exports.
–Indian government increased export subsidy on soymeal from 7% to 10% to make it competitive in international market.
–The area under soybean in the country increased by 10.6% at 10.9 lakh ha as of last week compared to last year sowing.
–At the Indore spot market in top producer MP, soybean dropped -5 Rupees to 3550 Rupees per 100 kgs.
Courtesy: Kedia Commodities
Source: Commodityonline.com
