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Soyabean on NCDEX settled up by 0.88% at 2858 on

Posted on Nov 08, 2017 by kc_admin

Soyabean on NCDEX settled up by 0.88% at 2858 on anticipation of good demand for the domestic oilseeds as government is going to hike import duty on edible oil and oilseeds. There are reports that government is expected to reimburse farmers of Madhya Pradesh if soybean is sold below MSP. However, new season arrivals and higher stocks from last year capped some gains. In the weekly USDA crop progress report; around 90% of the new soybean crop has been harvested which is less than 92% during the corresponding period last year and down from the 5 year average of 91%. Soybean arrivals across the country were 1.09 million tonnes in October, compared to 1.04 million tonnes in the comparable month last year. The Union Ministry of Agriculture forecast India’s output at 12.21 million tonnes in its First Advance Estimate, issued on September 22, compared to 13.79 million tonnes the previous year. Brazil is expected to win a larger share of China’s soybean imports in coming months, hitting U.S. exporters during the peak marketing season for their most valuable farm product as the world grapples with a fifth consecutive bumper crop. World soybean production stood at an all time-high at 351.254 million tonnes in the 2016/17 crop year, with output hitting record highs in three out of the prior four years. According to AgRural consultancy, soybean planting in Brazil has covered 30% of the area in line with 5-year average, but more than 10% below corresponding period last year. At the Indore spot market in top producer MP, soybean dropped  -3 Rupees to 2768 Rupees per 100 kgs.Technically now Soyabean is getting support at 2835 and below same could see a test of 2811 level, And resistance is now likely to be seen at 2878, a move above could see prices testing 2897.

Trading Ideas:

#             Soyabean trading range for the day is 2811-2897.

#             Soyabean prices gained on anticipation of good demand for the domestic oilseeds as government is going to hike import duty on edible oil and oilseeds.

#             There are reports that government is expected to reimburse farmers of Madhya Pradesh if soybean is sold below MSP.

#             NCDEX accredited warehouses soyabean stocks gained by 5464 tonnes to 77867 tonnes.

#             At the Indore spot market in top producer MP, soybean dropped  -3 Rupees to 2768 Rupees per 100 kgs