Soyabean under long liquidation

Soyabean market is under long liquidation as market has witnessed drop in open interest by 4.62% to settled at 189390 while prices down 60 rupees.

Now NCDEX Soyabean is getting support at 3318 and below same could see a test of 3273 level, And resistance is now likely to be seen at 3419, a move above could see prices testing 3475.

Soyabean on NCDEX settled down by 1.75% at 3363 on profit booking after prices gained expectation of government procurement at MSP and improving physical demand for new season crop from oil mills.

Further, Soybean Processors Association of India (SOPA) has projected an increase of 70% in soymeal exports during 2081-19 on expectations of fresh demand from China. Arrivals of soybean in Madhya Pradesh are lower than expected and any significant increase in supplies is unlikely till the assembly polls.

USDA indicated that 1.056 mt of soybeans were inspected for export in the week that ended on November 15, down 22.13% from last week and less than half of the same week in 2017. The delayed weekly Export Sales report indicated that 470,362 tn of soybeans were sold during the week of 11/8, on the low side of estimates.

Shipments in that week totaled 1.358 mt. CFTC report showed spec traders adding 9,947 contracts to their net short position at -55,025 contracts on 11/13. Soybean Processors Association of India (SOPA) has projected an increase of 70% in soymeal exports during 2081-19 on expectations of fresh demand from China.

Soybean arrivals across the country declined further to 730,000 tons from 750,000 bags a day earlier China imported 6.92 million tons of soybean as reported by Chinese customs 18% high y-o-y but 14% down m-o-m.  At the Indore spot market in top producer MP, soybean gained  24 Rupees to 3459 Rupees per 100 kgs.

Trading Ideas:
–Soyabean trading range for the day is 3273-3475.
–Soyabean dropped on profit booking after prices gained expectation of government procurement at MSP and improving physical demand.
–SOPA has projected an increase of 70% in soymeal exports during 2081-19 on expectations of fresh demand from China.
–NCDEX accredited warehouses soyabean stocks gained by 5450 tonnes to 120921 tonnes.
–At the Indore spot market in top producer MP, soybean gained  24 Rupees to 3459 Rupees per 100 kgs.

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