Soybean weakens on global cues

The Indian soybean derivatives market witnessed a choppy trend on Monday. The market opened on a firm note and showed a negative movement during the day despite firm trend in international market.
The trade participation was limited in absence of fresh fundamental triggers. Domestic cash markets witnessed moderate buying activity with limited supply of the produce. Lower volumes on Monday in all the contracts indicate limited trade participation.
Outlook
The soybean futures on Indian exchanges are projected to show a choppy trend on Tuesday. The market is likely to open on a weaker note tracking weak overseas market.
However, the CBOT soybean futures ended modestly higher on expectation of tight US soy ending stocks. At present, eCBOT soybean futures are trading on a weaker note tracking correction in other commodities especially precious metals and energy.
However, weakness in Indian market is likely to be limited on steady demand. Indian spot markets are witnessing moderate demand especially from stockists and crushers. Limited supply of the produce and likely emergence of soy demand for sowing purpose may limit the fall.
Domestic traders and investors are likely to buy soybean futures in later hours of the day on expectation of revival in demand for the produce. A recent fall in the prices is attracting traders and investors to buy bean futures.
Steady demand for soy meal in local market is likely to render support to the soybean market. Market talk of meal export enquiry from China is likely to lend support to the market.
Courtesy: Karvy Commtrade Ltd.
(Source: http://www.commodityonline.com/futures-trading/technical/Soybean-weakens-on-global-cues-23391.html)