Indian soybean futures extended its bearish trend in early trade of Saturday on follow through selling and taking cues from weak overseas market.
CBOT soy market futures ended lower on Friday as traders liquidated their positions ahead of USDA’s monthly crop report.
Disappointing weekly export sales data on Thursday and decline in crude oil prices had a bearish effect on global oilseeds market.
On domestic front, traders and investors liquidated their positions in a cautious approach for upcoming monthly crop progress report.
However, towards end of the day, prices regained on fresh buying reacting to strong meal export data released for December month.
Outlook
The soybean futures are projected to trade on a positive note on Monday on resumption of fresh buying. Encouraging oil meal export data for the month of December is likely to render support to the Indian soybean market.
According to the Solvent Extractors’ Association of India, soy meal export from India rose 86% Y/Y in December to 611,157 tons. During April-December, total soy meal export from India surged 55% Y/Y to 2.31 million tons.
Indian traders are taking an advantage of likely crop loss in Argentina and exporting more meal to South East Asian countries. Lower meal price of India compared to Brazil and Argentina is also supporting robust meal export demand. On global front, eCBOT soy futures are trading higher on resumption of fresh buying.
World oil and oilseeds traders are eagerly waiting for USDA’s monthly crop report scheduled for release on 12th January. We are expecting USDA is likely to trim world soybean production estimates as more damage is happened in South American countries.
