Soybean gains may be difficult to sustain in short term

AHMEDABAD (Commodity Online): After witnessing mixed trend in last couple of trading sessions, Soybean Prices at NCDEX, April contract has seen some fresh buying today due to short covering.
NCDEX, April contract Opened positively at 2295 per quintal and after making intraday low at 2592 it started trading upside and made an intraday high at 2338 and still expected to trade upside.
USDA’s Monthly supply & demand Report: The US Department of Agriculture today revised 2010-11 global soybean output estimate to 258.4 million tonnes, up by 2.3 million tonnes from its February estimate of 256.10 million tonnes. Brazil's soy crop output at a record 70.0 million tonnes n, up by 1.5 mln tn from the February estimate, due to timely rains in the producing regions of the country. It has raised output estimate for China as well which likely to put some pressure on soybean prices.
Technically, 14 days RSI on daily chart currently indicates at 34.00 shows that it may go up in near future but, 14 days RSI on weekly chart currently indicates at 42.00 suggest that it likely to down in near future.
“Positional traders are advised to wait for couple of sessions as strong bullish trend is not decided at this level. Intraday traders are advised to take the benefit of volatility on intraday basis”, said Milan Shah, Commodity Analyst with Commodity Online.

(Source: http://www.commodityonline.com/marketmovers/Soybean-gains-may-be-difficult-to-sustain-in-short-term-2011-03-15-3229-3-1.html)