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Bullish outlook for soyabeanBullish outlook for soyabean
Hindu Business Line, Indore, Aug 11:
Sluggish trend continued in soybean and soy oil on sluggish demand and weak global cues. With both farmers and traders remaining busy in festival mood today even a day after Rakhi festival, both soybean and soy oil traded low even as arrival of the soybean in mandis remained on the lower side.
In mandis across Madhya Pradesh, soybean on Monday was quoted at Rs 3,650-Rs 3,900 a quintal (down Rs 100 from last week) amid arrival of about 20,000 bags.
In future also soybean traded low on weak foreign and buying support with its October and November contracts on the NCEDX closing lower at Rs 3,560 and Rs 3,565 a quintal. Compared to last week, soybean's October contract on the NCEDX is trading Rs 100 a quintal lower.
However, given weak arrival and decline in domestic stock, any major fall in soybean prices from its current level appears unlikely. Reports of 25% decline in soybean crop sowing this year due to delayed monsoon is expected to add cushion to bullish trend in soybean in the coming days, said a trader talking to the Business Line.
In absence of demand in soy oil, plant deliveries of soybean on Monday were also quoted lower at Rs 3,875-Rs 3,900 a quintal (down Rs 200 from last week).
Soy oil also traded lower on slack physical demand, higher imports and weak global cues with soy refined today in local mandis was being quoted at Rs 635-42) (down Rs 8 from last week), while soy solvent declined to Rs 595-98 (Rs 612-15 for 10 kg last week). Given weak buying support, bearish sentiment in soy oil will likely to continue
Sluggish trend also continued in soy DOC on slack domestic demand with its prices on the spot on Monday were being quoted at Rs 35,500-Rs 36,00 a quintal ( Rs 36,000-Rs 36,500 a quintal last week).
According to Mr Mahesh Purohit, both soy oil and soybean prices will likely to remain range-bound but USAD report tomorrow may influence its prices.