June 24, 2010
NCDEX soy futures closed on short covering
July soy futures closed higher on account of short covering and some fresh buying at lower levels.
Export order of domestic soymeal from Japan has also provided support to bulls. Japan has bought 10,000 tonnes of Indian soymeal at US$375 a tonne on a cost-and-freight basis for delivery in July this year.
However, for medium term perspective, sowing progress of kharif oilseeds may drag prices down.
India’s soy plantation has reportedly picked up in Maharashtra, Madhya Pradesh, top two soy producing states. "The weather is perfect for sowing and we may expect a good crop," said an Indore-based trader.
USDA estimates this year's India soy crop at 8.8 million tonnes.
Prices closed above its 10-Day and below its 20-Day Exponential Moving Average (EMA), which indicates bullish market sentiments.
14-Day Relative Strength Index (RSI) is at 45.80, which is in neutral region.
Soy prices are expected to trade lower on poor export demand of soymeal. Progress of the monsoon and better carryover stock this year as compared to last year may drag prices down in the medium term. Higher global soy production estimate this year as compared to last year is in favour of bears.
