Soyabean Gained Amid Tightening Inventory Situation in the Country

  • Commodities Analysis
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Soybean yesterday settled up by 2.9% at 8127 amid tightening inventory situation in the country and amid slower pace of sowing. Government reports indicate that the weakening of rains has impacted the sowing of crops in Maharashtra, Gujarat, Rajasthan, Haryana, and Punjab. Area sown under soybean was lagging behind last year’s area by nearly 11.05 percent. Planting of overall oilseeds, including soybean, was at 11.2 million hectares, down from 12.6 million hectares the previous year. A “break” in the monsoon has affected Kharif sowing in many parts of the country this year. However, the area under soybean planting is likely to increase by 5-7% across the country this Kharif season despite speculation in the market over the shortage of seeds.  
 
Farmers, however, are keeping their fingers crossed due to the break-in monsoon and hope for a revival of the monsoon to ensure a good crop. In the 2020 Kharif season, soybean cultivation took place on 120 lakh hectares and the yield was about 105 lakh tonne. China's soybean imports in June hit their third-highest monthly level on record, customs data showed, boosted by a jump in shipments from Brazil. At the Indore spot market in top producer MP, soybean gained 11 Rupees to 8222 Rupees per 100 kgs.  
 
Technically market is under fresh buying as the market has witnessed a gain in open interest by 0.26% to settled at 42340 while prices up 229 rupees, now Soyabean is getting support at 7895 and below same could see a test of 7664 levels, and resistance is now likely to be seen at 8267, a move above could see prices testing 8408.
 
Trading Ideas:
# Soyabean trading range for the day is 7664-8408.
# Soyabean prices gained amid tightening inventory situation in the country and amid slower pace of sowing.
# Government reports indicate that the weakening of rains has impacted the sowing of crops in Maharashtra, Gujarat, Rajasthan, Haryana, and Punjab.
# Area sown under soybean was lagging behind last year’s area by nearly 11.05 per cent.

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