Speculative selling in Indian market led the NCDEX soybean futures to tumble in later hours of Monday.
Indian market ignored the gains on Malaysian palm oil market, which rose to a fresh 29-month high on Monday. CBOT soybean futures were also trading almost flat when Indian futures fell sharply.
Release of bullish oil meal export data released for November failed to support the soybean futures. The fall was a speculative selling while under-lying fundamental factors remain unchanged.
Outlook
The soybean futures are expected to trade on a weaker note extending its weakness on selling pressure.
As per derivative analysis, price and open interest declined while volume increased significantly indicating further weakness in the prices. Weak trend in international market is also likely to support the Indian market to extend its bearish trend.
Firmness in US dollar versus major currencies led the commodity fall. Furthermore, improvement in weather condition in South America added bearishness to the market. Beneficial rains for Brazil and western Argentina has been reported, which will reduce the concern of dry weather condition.
However, the fall was limited on robust export demand. US traders are trading cautiously ahead of USDA’s monthly crop report scheduled for release on this Friday.
Soy meal export from Indian in November rose 49% Y/Y to 443,488 tons while total oil meal export rose 42% to 492,740 tons. This may attract buying in later part of the day.
