Soyabean Gained on the Back of Tightening Inventory Levels of Major Vegetable Oils

Published 06-10-2021, 08:43 am

Soyabean yesterday settled up by 2.05% at 5672 on the back of tightening inventory levels of major vegetable oils and the possibility of a lower planting area in oilseeds. The latest USDA release is slightly bearish, and as per the report, the 2021/22 global oilseed supply and demand forecasts include lower production, crush, exports, and slightly higher ending stocks compared to last month.
 
The 2021/22 global oilseed supply and demand forecasts, as reported in the latest USDA release include lower production, crush, exports, and slightly higher ending stocks compared to last month. Foreign oilseed production is reduced by 3.6 million tons to 501.4 million, reflecting lower canola production for Canada and sunflower seed for Russia. The USDA reported Sept. 1 soybean stocks at 256 million bushels, above the entire range of trade estimates.
 
The USDA said U.S. processors crushed 168.2 million bushels of soybeans in August, below an average of trade estimates for 169.0 million. The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, raised their net-long position in soybeans. India's soybean production is estimated to be 10 million tonnes as compared to last year's 8.9 million tonnes. At the Indore spot market in top producer MP, soybean gained 256 Rupees to 5598 Rupees per 100 kgs.
 
Technically market is under short covering as market has witnessed drop in open interest by -6.84% to settled at while prices up 114 rupees, now Soyabean is getting support at 5569 and below same could see a test of 5465 levels, and resistance is now likely to be seen at 5763, a move above could see prices testing 5853.
 
Trading Ideas:
# Soyabean trading range for the day is 5465-5853.
# Soyabean gained on the back of tightening inventory levels of major vegetable oils
# India's soybean production is estimated to be 10 million tonnes as compared to last year's 8.9 million tonnes.
# At the Indore spot market in top producer MP, soybean gained  256 Rupees to 5598 Rupees per 100 kgs.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.