Soybean drops on selling pressure

The bearish trend in the soybean futures market was extended for third day on Wednesday on extended selling pressure.
Domestic traders and investors sold futures on anticipation for further shrink in demand for oil and meal. Spot markets saw subdued trading from traders and crushers amid thin supplies.
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. Bearish trend in international market driven by falling crude oil prices also exerted pressure on Indian market.
Outlook

The soybean futures are forecast to trade on a weaker note extending its bearish trend on extended selling pressure. Poor demand for the produce especially from crushers is likely to weigh on the market. Lack of fresh soy meal export enquiries from South East Asian countries is likely to exert pressure on the market.
In Indian market, trade activity is sluggish due to absence of fresh fundamental triggers. Most of the South East Asian countries are turning to Latin America to meet their meal demand. 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. Physical markets are witnessing poor demand for soybeans and its derivatives thus exerting pressure on price movement. Indian market is likely to move in sync with weak overseas market. CBOT soybean futures extended its bearish trend on Wednesday on continued selling pressure.
Broad based selling pressure in commodity exerted pressure on soy market also. Report of active rainfall in Midwest and Delta region of US has been prompting farmers to switch intended corn acreage to soy planting. Thus, global traders are expecting more soy acreage, which may result into good harvest of the crop.
Courtesy: Karvy Commtrade Ltd.

(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-drops-on-selling-pressure-23579.html)