2009-11-30 12:45:30
Soybean (NCDEX January Contract) futures fell sharply lower in the morning session on concern of Dubai Bank that he will not pay interest on a portion of their debt in coming months.
However, it recovered on short covering and better exports figures than expectations also provided support on Friday.
The USDA’s weekly net export sales for soybeans came at a whopping 1,135,300 tonnes, all for the current marketing year. As of November 19th, cumulative soybean sales stand at 76.3% of the USDA forecast for 2009/2010 versus a 5 year average of 51.1%.
Net meal sales came at total of 226,600 metric tonnes. Cumulative meal sales stand at 53.9% of the USDA forecast for 2009/10, which is also well above the 5 year average of 35.8%.
Technical Analysis
Prices (NCDEX January Contract) closed higher at Rs.2471.00 per quintal on Friday; its high of the day was 2480.00 levels and touched a low of 2412.00 levels.
Prices closed above its 10 Day & above its 20 Day EMA. 14-Day RSI is at 69.87, which is in neutral zone.
Outlook
Soybean prices are expected to trade range bound on lack of fresh fundamentals (for short term). However, in the long term it is expected to trade lower on account of 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.
Courtesy: Angel Commodities
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