India: Soybean slumps on selling pressure

The soybean futures on Indian exchanges traded on a negative note on Monday on emergence of selling pressure. Sluggish demand for the produce in local markets amid thin supplies had a bearish impact on the futures market.
Due to absence of fresh soy meal export demand from South East Asian countries, traders and crushers were away from active buying of beans from the spot market.
Indian market moved in line with weak overseas market. Forecast of wet weather condition across Eastern Midwest region of US, which may result into commencement of soy planting, had a bearish impact on the market.
Dwindling world demand for soy and its by-products has been putting pressure on the market.
Outlook

The bearish trend in soybean futures market is likely to be extended on Tuesday on follow through selling. Poor off-take of the produce from crushers and traders amid limited availability is likely to keep prices under pressure.
Absence of fresh soy meal export enquiries from South East Asian countries is prompting crushers to postpone their aggressing crushing and bean procurement. With the full-fledged harvesting of soy crop in Brazil and Argentina, these countries are offering soy meal at much lower price thereby attracting global soy meal buyers towards them.
Discouraging crush margin in local market is resulting to poor crushing activity. Indian market is likely to move in line with weak overseas market. CBOT soybean futures ended modestly lower on continued selling pressure. Forecast of wet weather condition eastern Midwest and Delta area of US is resulting into soy planting in place of corn.
Shrinking global demand for soybeans and increasing competition from South America is adding bearishness to the market. According to Safras and Mercado, 96% of Brazilian soybean crop has been harvested as on 29th April 2011. Argentina farmers harvested 64% of their soy crop as on 28th April 2011.
Courtesy: Karvy Commtrade Ltd.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-slumps-on-selling-pressure-23523.html)