Soybean rises on short covering

The soybean futures on Indian exchanges recovered on Wednesday from previous day’s sharp decline due to short covering.
Speculative buying at lower levels and firm trend in overseas market resulted into recovery in the prices. However, gains were limited as underlying fundamental factors were bearish for the market.
Spot markets continued to witness subdued trading on poor off-take of produce especially from crushers. Poor meal export enquiries and declining crush margin prompted crushers to abstain from active buying.
Outlook
The soybean futures are expected to trade on a weaker note on Thursday on fresh selling backed by bearish fundamental factors.
Lack of buying interest in the physical market amidst thin supplies and poor meal export enquiries is likely to keep the prices under pressure. Lower crush margin is also prompting them to stay away from active buying.
Soy meal exports in February month were lower than January due to higher price compared to other countries. Meal exports are likely to be down in March as harvesting of the crop is in full swing in Brazil and it is likely to commence very soon in Argentina. Physical markets are likely to witness subdued trading on poor demand especially from crushers amidst thin supplies.
On global front, CBOT soybean futures stumbled sharply on continued selling pressure on anticipation of rise in output forecast for Brazil. Market participants are eagerly looking for release of monthly World Agriculture Supply and Demand Estimates report due for release on Thursday.
In our opinion, USDA is likely to maintain production forecast as same as last month projection. In February, USDA raised Brazilian soy production forecast by 1 million ton to 68.5 million ton and lowered for Argentina by 1 million ton to 49.5 million ton.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-rises-on-short-covering-22464.html)