Soybean falls on selling pressure

The NCDEX soybean futures witnessed a plunged to hit 3% intraday lower limit on strong selling pressure.
The futures prices fell to 8-week low. Indian market came under the influence of sharp decline seen in international market.
Spreading of political unrest in Middle East countries had a strong bearish impact on the global commodity market. Global traders sold futures anticipating further shrink in demand for soybean and its derivatives following political uncertainty.
Improvement in harvesting of the crop in Brazil prompted traders in that country to lower their bean and its by-product prices.
On domestic front, market participants sold futures reacting to global market and on speculation that likely slash in import duty on refined oils.
Outlook
The soybean futures are projected to recover from its previous losses on short covering and taking cues from firm overseas market.
CBOT soy and BMD palm futures are trading higher retreating from their yesterday’s fall on short covering. However, the overall trend is still looking weak for entire oil and oilseeds market.
Indian market is depending upon the General Budget wherein Finance Minister is likely to announce serious measures to control food inflation. In our opinion, government may slash import duty on refined oils and may give incentives for import of oil and other essential commodities import.
Spot markets are likely to witness subdued trading on poor demand from crushers. Due to absence of fresh soy meal export enquiries, most of the crushers have slowed their bean purchases from the spot market.
Most of the South East Asian countries are shifting their demand from India to Latin America following commencement of harvesting in that nation.
Though arrivals are limited across major spot markets, demand is not picking up due to poor meal export demand and on declining crush margin. Identification of harmful pest in the soy meal cargo sent to Vietnam is likely to damper the demand for soy meal.
In the parliament, the finance minister said food inflation is the major concern for the government and it will try to take necessary steps to control.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-falls-on-selling-pressure-22155.html)