Soybean continues uptrend on fresh buying

The NCDEX soybean futures extended its bullish trend for fourth consecutive day on Saturday on follow through buying.
Indian traders and investors advanced their buying interest on speculation that demand would rise in the short term. Limited supply of the produce and encouraging meal export demand attracted active buying from the crushers.
Indian market moved in line with strong overseas market. CBOT soybean futures rallied on Friday after release of bullish USDA’s monthly crop report.
Projection of tight ending stock and likely decline is US soy acreage gave underlying support to the global oil and oilseeds market.
Outlook
The bullish trend in the soybean futures market is likely to be extended on Monday on continued buying interest.
Domestic traders and investors are likely to advance their buying activity anticipating revival in demand for soybean and its derivatives. Spot markets are witnessing active buying interest from traders and crushers amid thin supplies. Major markets across India are witnessing around 50,000 bags of arrivals on daily basis.
Encouraging oil meal export data is also rendering support to the market. According to the Solvent Extractors Association of India, soy meal exports in March month were down 24% M/M and up 151% Y/Y at 410,537 tons.
According to trade sources, Indian traders are getting fresh meal export orders from South East Asian countries. Indian market is likely to move in line with firm international market.
Bullish monthly crop report released by USDA on last Friday is likely to support the global market. In April month World Agriculture Supply and Demand Estimates report, USDA kept unchanged the US and Argentina soybean production estimates same at 90.61 and 49.50 million tons, respectively.
However, production forecast was raised for Brazil to 72 million tons from 70 million tons projected last year. US ending stocks were projected at 3.81 million tons against 3.82 million tons projected a month ago.
Global supply demand mismatch and rising crude oil prices is supporting the oil and oilseeds market to trade higher.
Courtesy: Karvy Commtrade Ltd.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-continues-uptrend-on-fresh-buying-23146.html)