Technically NCDEX Soyabean market is under fresh selling as market has witnessed gain in open interest by 0.4% to settled at 201835 while prices down 36 rupees.
NCDEX Soyabean prices is getting support at 4282 and below same could see a test of 4257 level, and resistance is now likely to be seen at 4357, a move above could see prices testing 4444.
Soyabean on NCDEX settled down 0.83% at 4324 on profit booking after prices gained due to paucity of quality produce despite the higher mandi arrivals.
Quality damage and yield loss has been reported for the new season crop due to the unseasonal and extended rainfall. Apart from quality, output is also expected to remain lower than its preliminary estimates.
As per the data released by the Soybean Processors Association of India (SOPA) in Oct 2019, Soybean production in the country is estimated at 89.94 Lakh tonnes in 2019-20, down 18% from last year owing to yield loss in key growing regions following heavy rains.
USDA has lowered its 2019-20 projection for global Soybean production to 3365.60 Lakh tonnes in its November estimates compared with 3389.70 Lakh tonnes.
At 3365.60 Lakh tonnes, the production is likely to be 6% lower from the previous year.The likely decline in soybean production in 2019-20 is due to an anticipated smaller crop in Canada because of lower yields.
Soybean Processors Association of India has urged the government to reinstate an export benefit given to Soymeal exporters, who have been in trouble since the government arbitrarily stopped giving the 7% export incentive on meal from the start of August. At the Indore spot market in top producer MP, soybean gained 32 Rupees to 4479 Rupees per 100 kgs.
