Thursday, 3 October 2013

Domestic Market Update on Soyabean Crop

On Tuesday, soybean ended the session on a higher note supported by lower arrivals in the spot market. Lower arrivals during the season have raised concerns over the crop size this year. The actual loss due to abnormal rains can be larger than estimated. Hence, until we see a major pick up in arrivals in the spot markets, bulls will continue to ride over the bears. Soy oil prices gained sharply due to improved demand of oil in the spot market ahead of the festivities. Lower crushing in the last two months has resulted in lower oil availability which is also a supporting factor. The appreciation of the home currency against the dollar will keep the gains limited for the day. Our view in soybean would be supportive for the start but actual arrivals in the spot market and demand progress during the day will drive the sentiments.


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