Soybean ends higher on fresh buying

The bullish trend in the soybean futures market has been extended on Monday on continued buying interest. Domestic traders and investors were on buying spree on expectation of revival in demand for the produce.
There were no cues from the spot market as most of the markets were closed on local holiday. Indian market moved in sync with firm international market.
Bullish USDA planting and quarterly ending stock report was driving force for CBOT soy market. BMD palm oil futures were also trading higher tracking strong CBOT soy market.
Outlook
The soybean futures are projected to take a correction on Tuesday from its recent rally. Indian traders and investors are likely to liquidate their long positions anticipating market is set for correction.
Spot markets are likely to re-open after local holiday and may witness increased inflow of the produce. Indian market is likely to move in line with weak international market. CBOT soybean futures ended down on profit sales.
Forecast of favourable weather for South America, which may boost the harvesting activity, resulted into marginal decline in the prices. However, short-to-medium term trend is likely to remain positive. Tight US ending stocks and likely decline in 2011 soy acreage is likely to keep the global prices on a positive note.
Looking into unprecedented rally in cotton prices, US farmers are likely to increase cotton acreage by 20% while soy acreage is likely to decline by 2%. On domestic front, buying support may emerge in later hours of the day. Traders and investors are likely to start buying on expectation of revival in soy meal export demand.
Limited supply of the produce is likely to give cushion to the prices. According to derivative analysis, there has been shift in trade from April to May contract as the earlier contract is nearing its expiry. In April contract, open interest has declined marginally indication correction is likely to happen.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-ends-higher-on-fresh-buying-23012.html)