India: Soybean weakens on speculative selling

The NCDEX soybean futures traded on a weaker note on Tuesday extending its previous losses on speculative selling. Indian market moved in line with weak overseas market.
A sharp decline in international market was driven by dwindling demand outlook and supported by decline in crude oil prices.
In domestic front, traders and investors were away from active buying in absence of fresh fundamental triggers in the market.
Outlook
The bearish trend in the soybean futures market is likely to be extended on Wednesday on continued selling pressure. Increasing oil meal supply competition from South America has been hindering the demand for Indian meal.
There are no fresh meal export enquiries from South East Asian countries, which may exert pressure on the futures market. Poor buying interest from crushers due to absence of meal export demand is likely to exert pressure on the market. Indian market is likely to move in line with weak overseas market.
CBOT soybean futures ended lower on Tuesday due to continued selling pressure. Slumping global demand for soybeans and increasing competition from South America is adding bearishness to the market.
Moreover, delay in corn planting due to wet weather condition may result into pick in soy planting. Market is reacting to the concern of likely decline in Chinese demand in the near term.
Chinese government is likely to take some steps to curb the higher inflation, which may be a bearish factor for the global market. Derivative analysis (fall in prices and open interest along with rise in volume) is indicating further weakness in the prices.
Courtesy: Karvy Commtrade Ltd.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-weakens-on-speculative-selling-23415.html)