Soybean trades down on global cues

Indian soybean futures traded down side on Saturday owing to the lower closing of the CBOT on Friday. The CBOT closed lower owing to expectations of the recovery in the weather.

Across the Indian commodity bourses also the traders went in for profit booking. The concern about the increase in MSP is affecting the domestic market sentiments.

Outlook

NCDEX Soy bean futures are expected to trade down side for the day. The south west monsoon has hit the Kerala coast with the arising the brighter prospects of sowing which might affect the market sentiments.

The considerations of the increase in MSP of oil seeds might come up strongly during the current sowing season to reduce the import dependency of the oil which might keep the prices under pressure. However the good crushing margin might help the prices to recover.

The e-CBOT is currently trading down side on concerns of the weather recovery and the expectations of the better planting during the week. The weather has recovered across the Iowa and nearby regions while it’s forecasted to recover across the north Dakota regions during the week. However the delay in the sowing season might always have concerns about the final yields.

The decline in the international meal prices is also affecting the market sentiments. The USDA supply demand reports might forecast tight supplies during the year prompting the prices to recover.

The USDA census crush data showed a decline in the crushing by 9% (127.9 million bushels v/s 140.3 million) and the soy oil ending stocks with the mills is down by 10% which might help the prices to recover.

Courtesy: Karvy Commtrade Ltd.

Source: http://www.commodityonline.com/futures-trading/technical/Soybean-trades-down-on-global-cues-23953.html