Soyabean market is under short covering as market has witnessed drop in open interest by 2.65% to settled at 198560.
Now NCDEX Soyabean is getting support at 3412 and below same could see a test of 3401 level, And resistance is now likely to be seen at 3434, a move above could see prices testing 3445.
Soyabean on NCDEX settled up 0.12% at 3423 amid improving demand at spot markets and on expectations of demand of soybean and soymeal from China. 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. China has stockpiled Soybean as Brazil moves into lean season and as China is reluctant to buy Chinese soybean, China is trying to hedge its stock position.
–Soyabean trading range for the day is 3401-3445.
–Soyabean gained on expectation of improving soybean and soymeal demand from China in coming months.
–As per SOPA, India’s soymeal exports in 2018/19 could jump as much as 70% from a year ago, buoyed by expected purchases.
–NCDEX accredited warehouses soyabean stocks gained by 1572 tonnes to 115471 tonnes.
–At the Indore spot market in top producer MP, soybean gained 10 Rupees to 3435 Rupees per 100 kgs.