Soyabean under long liquidation

Soyabean market is under long liquidation as market has witnessed drop in open interest by 0.89% to settled at 173480 while prices down 11 rupees.

Now NCDEX Soyabean is getting support at 3707 and below same could see a test of 3685 level, And resistance is now likely to be seen at 3757, a move above could see prices testing 3785.

Soyabean on NCDEX settled down 0.29% at 3730 tracking weakness in spot demand on higher off-season arrivals and higher production forecasts.

As per latest press release by SOPA, India’s soybean output is higher by 38% at 114.8 lakh tonnes this year due to increase in average yield across the country. Reports showing soymeal exports from India are expected to rise 25% on year to around 15 lakh tonnes in 2018-19 (Apr-Mar).

Pressure seen driven by higher projection of 2018-19 soybean output. India’s soybean output is likely to rise by a staggering 38 per cent this year on a sharp increase in average yield across the country, following favourable climatic condition in major cultivating states including Madhya Pradesh, Maharashtra and Rajasthan.

Data captured through the latest assessment of farmers, traders and other stakeholders by the apex industry body the Soybean Processors;s Association (SOPA) showed India’s total soybean output standing at 11.48 million tonnes during the ongoing harvesting season as compared to 8.36 million tonnes in the previous season.

During the current season, soybean acreage was up 6.7 per cent to 10.84 million hectare (ha) from 10.16 million ha in the previous season.

The survey presented a surprising picture in Maharashtra despite droughts in many agricultural pockets in the state. Soybean output in Maharashtra is estimated to rise by 32 per cent to 3.84 million tonnes for this year from 2.91 million ha last year.

Trading Ideas:
–Soyabean trading range for the day is 3685-3785.
–Soyabean prices ended with losses tracking weakness in spot demand on higher off-season arrivals and higher production forecasts.
–India’s soybean output is higher by 38% at 114.8 lakh tonnes this year due to increase in average yield across the country.
–Reports showed soymeal exports from India are expected to rise 25% on year to around 15 lakh tonnes in 2018-19
–At the Indore spot market in top producer MP, soybean dropped 3 Rupees to 3842 Rupees per 100 kgs.

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