Soybean tumbles on global cues

Tuesday was volatile trading day for Indian soybean futures. Prices moved in both positive and negative territory, but, ended the day at opening level.
Initially prices traded on a weaker note extending its previous weakness on continued profit booking and moving in line with weak overseas market. However, trade participation was subdued ahead of USDA monthly crop report on Wednesday.
In later hours of the day, prices recovered on fresh buying moving in line with firm overseas market. Tight world veg oil supply situation and robust demand lent support to the market.
Outlook
The soybean futures on Indian bourses are likely to trade higher on fresh buying supported by strong fundamental factors.
Encouraging oil meal export demand is likely to render support to the market. According to the Solvent Extractors Association of India, soy meal export during Apr-Jan rose 67% Y/Y to 2.88 million tons. December month soy meal exports more than doubled Y/Y to 574,996 tons.
Indian traders are likely to buy futures anticipating USDA will come positive for the market. Indian market is likely to move in line with firm international market. CBOT soybean futures ended higher on Tuesday erasing earlier losses on fresh buying and on robust demand.
However, the trading activity has been lacklustre ahead of USDA monthly crop report due for release today. Though China had raised its interest rate by 25 bps it failed to have greater impact on the market and we are expecting China is likely to be largest importer of soy in this year.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-tumbles-on-global-cues-21798.html)