Domestic Market Update on Soyabean Crop
In the domestic market, soybean prices ended the session a tad lower after rising above previous day’s close. Concerns over the damage due to rains to the standing groundnut crop in Gujarat kept the sentiments positive for all the major oilseeds. Soybean arrivals in the spot market of Madhya Pradesh were recorded at 175,000 bags compared to 150,000 bags. It is expected that from the coming week, arrivals in the spot market will rise and we could witness upto 300,000-350,000 bags. This may keep prices under pressure. Mustard and soy oil prices remained sideways and prices were not able to sustain at higher levels. Yields this year have a taken a hit but the overall crop size is larger than last year. Considering this we expect harvest pressure to bring down soybean and oil prices though the sharp downside will be limited due to concerns over the US soybean crop. For the day, we recommend selling November soybean contract between Rs 3465-3485 per quintal with a stop loss above Rs 3550 for a target of Rs 3300.
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