2009-11-19 15:57:08
Soybean (NCDEX December Contract) futures closed higher on firm physical market.
Firm soybean futures at CBOT also added bullish market sentiments.
Private crop forecasters have lowered their estimates of the Argentine soybean crop recently due to dry planting weather.
As per National Oilseed Processors Association (NOPA), this week's export inspections for soybeans were 59.945 million bushels which was at the high end of trade expectations. Somewhat drier conditions are expected over the next few days from Missouri through central Illinois and into northern Indiana.
Heavy rains fell in southern Brazil over the weekend. This is an area where soybeans are still being planted, so these rains will cause some delays.
Technical Analysis
Prices (NCDEX December Contract) closed higher at Rs.2389.00 per quintal on Wednesday; its high of the day was 2390.00 levels and touched a low of 2339.00 levels.
Prices closed above its 10 Day & above its 20 Day EMA. 14-Day RSI is at 74.75, which is in overbought zone.
Outlook
Soybean prices are expected to trade higher on firm soybean futures at CBOT and lower arrivals in physical mandis (for short term). However, in the long term it is expected to trade lower on account of harvesting pressure and lower export demand of domestic soy meal. Globally soybean production is estimated higher as compared to last year also in favour of bears in the market. Brazil's Conab, which is a division of their Department of Agriculture, raised its soybean estimate slightly to 63.05 million tonnes versus an estimate of 62.8 million tonnes last month.
Courtesy: Angel Commodities
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