Soybean gains on active buying

The NCDEX soybean futures broke its falling streak and recovered smartly on Thursday due to short covering.
Traders and investors covered their short positions anticipating recent decline is looking overdone. Firm trend in overseas market also gave mild support to the market.
Spot markets also saw a mild recovery yesterday with emergence of stockist buying. However, crushers were away from active buying due to poor meal export demand and falling crush margin.
Outlook
The soybean futures are forecast to trade on a positive note on extended short covering and taking cues from firm overseas market. Traders and investors are likely to continue short covering anticipating recent fall is looking overdone.
However, fundamental factors are still bearish for the market. Crushers may continue to abstain from active buying because of poor meal export demand. Shrinking crush margin is also prompting them to stay away from active buying.
Market participants are closely watching for budget wherein government is likely to announce some measures to control food inflation. Indian market is likely to move in line with firm international market.
CBOT soybean futures retreated from their recent losses on short covering. The news of China lowering import tax led to rise in the prices. According to USDA, weekly export sales of soybean during February 4-10 were 514,500 tons, higher than previous week, but, 20% lower than prior 4-week’s figure.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-gains-on-active-buying-22039.html)