Soybean tumbles on selling pressure

The NCDEX soybean futures opened the week on a positive note extending its previous week-end’s gains on continued buying interest.
Traders and investors advanced their buying anticipating revival in demand for soybean and its processed products in the near-term.
But, market failed to sustain its positive trend and resumed downward movement in later part of the day on emergence of selling pressure.
Soybean market reacted to the Union Budget wherein Finance Minister proposed more allocation of funds for increasing production and productivity of oilseeds. Indian market moved in sync with weak global market.
Outlook
The soybean futures are expected to extend its bearish trend on Tuesday on follow through selling. Market is likely to react to the General Budget wherein Finance Minister has proposed hike in allocation of funds for increasing production and productivity of oilseeds.
He also proposed to enhance cultivation of oil palm in 60,000 hectares with a budget allocation of `300 crore.
Finance Minister gave greater emphasis on agriculture and extended full support to increase India’s food grain production. Indian market is likely to move in line with weak overseas market.
CBOT soybean futures ended down retracing from Friday’s gains on profit selling. Larger crop expectation in Brazil and improvement in harvesting added bearish sentiment to the market.
China is sourcing its soy demand from South America due to lower price compared to US. Crushers have slowed down their bean purchases due to sluggish export demand and on poor crush margin. Derivative analysis (fall in price, open interest and rise in volume) is indicating further weakness in the prices during the day.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-tumbles-on-selling-pressure-22240.html)