Soybean falls on sluggish demand

Short covering on recent led the Indian soybean futures market to open on a positive note. Firm trend in international market also gave mild support to the Indian market.
However, positive trend was not sustained and prices resumed its downtrend on continued selling pressure. Sluggish demand for soybean and its by-products in domestic market kept the market under pressure.
Domestic traders and investors are very much concerned about likely government steps to control food inflation. Moreover, weakness in international market added further bearishness to the market.
BMD palm oil futures were sharply down in first session on strong selling pressure coupled with sluggish demand.
Sluggish demand and weak overseas market led the Indian market witness a sharp decline. However, towards end of the day, prices recovered from intraday lows on short covering.
Outlook
The soybean futures are expected to extend its bearish trend on continued selling pressure.
Weak trend in overseas market is likely to exert pressure on Indian market. CBOT soy futures tumbled on selling pressure following intensifying political unrest in Middle East and North Africa, which dampens the demand for the produce.
Slowdown in global demand for agriculture produce has been putting pressure on the price movement. Domestic markets are likely to witness sell-off on poor demand from traders and crushers.
Due to poor meal export enquiries and declining crush margin, crushers have slowed down their bean purchased amidst thin supplies in the spot market. Market participants are more concerned about the budget.
Spot markets are likely to witness subdued trading on poor demand from crushers. Most of the South East Asian countries are shifting their demand from India to Latin America following commencement of harvesting in that nation. Indian market is likely to move in line with weak overseas market.
Ongoing political unrest in Middle East and North Africa is dampening the demand for agriculture produce thus putting pressure on the market.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-falls-on-sluggish-demand-22186.html)