Soybean trade expected to trade lower

2009-12-07 13:11:26

Soybean (NCDEX January Contract) futures closed slightly lower on poor export demand of soy meal.

The Solvent Extractors’ Association of India has just compiled the data for export of oil meals for the month of November 2009. The export during the month of November 2009 is reported at 346,859 tons compared to 678,169 tons in November 2008.

The overall export of oil meals during first eight months of the financial year 2009-10 is reported at 1,890,706 tons compared to 3,360,966 tons for the same period of last year i.e. down by 44% due to weak export demand and lower crushing/processing due to disparity.

Technical Analysis

Prices (NCDEX January Contract) closed lower at Rs.2491.00 per quintal on Saturday; its high of the day was 2500.00 levels and touched a low of 2481.00 levels.

Prices closed above its 10 Day & above its 20 Day EMA. 14-Day RSI is at 63.11, which is in neutral zone.

Outlook

Soybean prices are expected to trade slightly lower on poor export demand of soy meal (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