Soybean drops on subdued demand

The NCDEX soybean futures extended its bearish trend on Tuesday on follow through selling backed by bearish fundamental factors. Poor 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. Shrinking global demand for soybean and its derivatives and improving supply situation added bearishness to the market.
Outlook
The soybean futures are projected to extend its bearish trend on Wednesday on continued selling pressure. Sluggish demand for the produce especially from crushers is likely to weigh on the market.
Absence of fresh soy meal export enquiries from South East Asian countries is prompting crushers to postpone their aggressing crushing and bean procurement. 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 line with weak overseas market.
CBOT soybean futures tumbled over 2% on Tuesday on broad based commodity selling. Weakness in crude oil market also had a bearish impact on the market.
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-subdued-demand-23552.html)