Indian soybean futures declined on Saturday due to the weak buying support across the Indian markets.
The negative closing of the CBOT due to the strengthening dollar index prompted the fall in the prices in the Indian market also.
The decline in the weekly exports sales to china due to lack of demand resulted in the fall of the prices. Higher projections of the stocks of soybean also kept the prices under pressure.
Outlook
The NCDEX soy bean futures are expected to recover from the decline on Saturday. The near term demand to evolve for the seed consumption purposes is expected to support the prices.
The crush margin is also improving from the last week which is expected to attract the buyers across the physical markets. The slow progress of the sowing activities across U.S might lend support to the prices.
The soy meal FOB prices are almost at par with Argentina Prices which might result in shifting of the demand towards India as the preference for the Indian meal is convenient because of the proximity to the South East Asian countries.
The concerns of the wet weather conditions in the mid west and the delta is raising doubts about the sowing prospectus and the final yield of soy bean. The upside might be limited as the dollar index is forecasted to strengthen for the day.
Courtesy: Karvy Commtrade Ltd.
Posts
0 comments