Soyabean under short covering

Soyabean market is under short covering as market has witnessed drop in open interest by 4.18% to settled at 196570 while prices up 3 rupees.

Now NCDEX Soyabean is getting support at 3344 and below same could see a test of 3323 level, And resistance is now likely to be seen at 3384, a move above could see prices testing 3403.

Soyabean on NCDEX settled up by 0.09% at 3365 amid good demand from the oil mills after prices dropped anticipation of improving arrivals. As per SOPA press release, India’s soymeal exports down 20% on year to around 3.28 lakh tn during last two months (Oct-Nov) while arrivals have been at 41 lakh tonnes, up 14% compared to last year.

According to senior govt officials, China is likely to open its doors to soybean from India after allowing the import of non-basmati rice and raw sugar. USDA in its December update, showed no changes to the India output at 11 mt for 18/19 season, but up 32% on year.

USDA pegs soymeal production up 2.2% on month and 22% on year at 75 lakh tonnes in 2018/19 due to increase in crushing by 22% this season. The USDA said 974,876 tonnes of soybeans inspected for export last week, above trade expectations for 600,000 to 900,000 tonnes.

Shipments of soybeans in the week that ended on 12/13 totaled 974,876 MT, acc to the Export Inspections report up 5.21% than last week but down 45.72% from the same week in 2017.

NOPA report indicated that members crushed 166.96mbu of soybeans during November up 2.09% last year but down 3.13% from last month’s record due to one less calendar day. At the Indore spot market in top producer MP, soybean dropped  -8 Rupees to 3422 Rupees per 100 kgs.

Trading Ideas:
–Soyabean trading range for the day is 3323-3403.
–Soyabean prices gained amid good demand from the oil mills after prices dropped anticipation of improving arrivals.
–As per SOPA press release, India’s soymeal exports down 20% on year to around 3.28 lakh tn during last two months.
–NCDEX accredited warehouses soyabean stocks gained by 130 tonnes to 130929 tonnes.
–At the Indore spot market in top producer MP, soybean dropped  8 Rupees to 3422 Rupees per 100 kgs.

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