Soybean falls on global cues

The Indian soybean futures ended almost flat on Tuesday after witnessing both sided trading. The active April contract futures opened the day on a weaker note on continued selling pressure and taking cues from weak overseas market.
Bearish domestic fundamental factors like sluggish demand from crushers due to poor meal export enquiries and increasing inflow of Rabi oilseeds added bearishness to the market.
But, in middle of the day, prices recovered smartly due to short covering. Towards end of the day prices resumed its downtrend and ended the day on a flat note.
Outlook
The soybean futures are forecast to extend its bearish trend on Wednesday on follow through selling and taking cues from weak overseas market. CBOT soybean futures fell to hit intraday lower limit on Tuesday due to strong selling pressure.
Global traders sold futures raising concern over global demand for food products due to ongoing geo-political concern in Middle East and North Africa. A natural disaster in Japan and its likely spread into other nations is also dampening the demand.
With the recent quake-hit tsunami, the Japanese demand has been declining as their ports and other transport means have disturbed thus resulting into sluggish demand. Global sell-off in commodity market is extending its effect to agriculture commodities as well.
On domestic front, poor meal export demand and increasing inflow of Rabi oilseeds to major spot markets is likely to keep the prices under pressure. Japan’s tsunami will have a negative impact on Indian soy market as Japan is the largest importer of soy meal from India.
Of the total soy meal exports, nearly 40% goes to Japan per annum. Domestic spot markets are witnessing subdued trading on poor buying interest amid thin supplies. Domestic traders and investors are likely to sell futures anticipating further weakness in demand for soybean and its derivatives during summer months. Full-fledged arrival of Rabi oilseeds is also putting pressure on the market.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-falls-on-global-cues-22602.html)