Soybean falls on selling pressure

The soybean futures on Indian bourses plunged to a new contract low on Monday on continued selling pressure backed by sluggish demand for the produce. Indian market moved in line with weak overseas market.
Ongoing geo-political tension in major countries has been putting pressure on the commodity market in terms of reducing demand for agro products. Larger crop expectation in Latin America and falling global demand has been weighing on the world oil and oilseeds market.
On domestic front, traders and investors sold futures anticipating further shrink in demand for soybean and their processed products during summer months.
Outlook
The soybean futures are projected to open on a positive note due to short covering and taking cues from overnight’s gains in CBOT soybean market. However, trend will remain bearish for the day based on bearish fundamental factors.
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. Most of the crushers have slowed down their bean purchases following poor meal export enquiries.
Spot markets are witnessing subdued trading on poor trade participation from end-users amidst thin supplies. CBOT soy futures are likely to turn negative as underlying fundamental factors are bearish for the market.
Larger crop expectation in Latin American and shrinking global demand is putting pressure on the market. In its March month World Agriculture Supply and Demand Estimates report, Brazilian soybean production estimates were raised by 0.5 million tons to 70 million tons.
For US and Argentina is maintained production forecast at 90.61 million tons and 49.5 million tons, respectively. World soy production projection was raised to 258.40 million tons from 256.10 million tons. Derivative analysis (fall in price, open interest and rise in volume) is also suggesting continuation of weak trend on Tuesday.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-falls-on-selling-pressure-22567.html)