Soybean tumbles on global market

The soybean futures on Indian bourses tumbled sharply on Tuesday on follow through selling and taking cues from weak Malaysian market.
Increased inflow of Rabi oilseeds across major spot markets had a bearish effect on the market. With the nearing of financial year ending, traders, crushers and other market participants were away from active trade participation.
Lesser volume in last couple of days has been supporting the stance of limited trade participation. Weak trend in Malaysian palm oil market due to poor export data added bearishness to the market.
Outlook
The soybean futures are projected to recover from their earlier losses on emergence of fresh buying and supported y firm international market.
Domestic traders and investors are likely to buy futures anticipating more demand for soy meal from Japan. Japanese food grain and soy meal imports are likely to increase in the short-to-medium term as its food items are contaminated with nuclear radiation.
Japan is the largest export destination for India’s soy meal export accounting for 40% of our exports. Indian markets are likely to move in line with firm international market. CBOT soybean futures ended higher on Tuesday on uncertainty of planting.
Market participants are cautious about how soy planting takes place in upcoming season in US. Soybean planting is likely to get competition from cotton as its prices are at all-time high.
Supply disruption in Latin America due to unfavorable weather condition is likely to support the prices. However, Indian markets are likely to witness lacklustre trade participation due to nearing of fiscal ending.