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Soybean fut may trade with positive bias: Kotak Commodity

Kotak Commodity has come out with its report on oil seeds. According to the research firm the NCDEX December contract is getting support near Rs 2190-2200/qtl while resistance is seen near Rs 2270-2280/qtl.

November 15, 2011 / 12:56 PM IST

Kotak Commodity has come out with its report on oil seeds. According to the research firm the NCDEX December contract is getting support near Rs 2190-2200/qtl while resistance is seen near Rs 2270-2280/qtl.


The outlook for edible oil and oil seed futures are expected to change on emerging weather concerns in Malaysia and Indonesia palm producing region. Continued wet spell in these regions could affect the production prospects. In addition to this wet weather in US is also delaying the last leg of the harvest. Also lending support to the market is hopes on euro zone crisis to end amid depreciating rupee against the US dollar. We see the outlook for the markets turning positive for medium term.


Soy beans at the cash market traded firm on good buying interest along with positive cues from futures counter. Good buying interest for oil and meal also lend support to the prices. The arrival pressure has also faded for the season. Spot soybean traded firm in the major markets of Madhya Pradesh and Maharashtra Monday. Bullish tone in futures market and good demand supported the prices. In major markets of Madhya Pradesh soybean traded at Rs 1,800-2,110 per 100 kg, while in Maharashtra at Rs 1,900- 2,160 per 100 kg. Arrival in MP was 500,000 bags; around 250,000 bags in Maharashtra and in Rajasthan arrival comprised around 250,000 bags.


Forward Curve and Spreads
On Monday we witnessed a positional shift in forward curve towards the left on active buying. Good buying interest supported the prices. The spread between November and December eased slightly to 30 from 32. We expect the spread to head towards 45-50 during coming days.


OUTLOOK: Indian soy bean futures are expected to trade with a positive bias for intraday trade tracking firm cues from CBOT soy beans during early trades. Also supportive featured is depreciating Rupee against the US dollar. The NCDEX December contract is getting support near Rs.2190-2200/qtl while resistance is seen near Rs.2270-2280/qtl. ACE December is getting support near Rs. 2190-2200 and resistance is seen near Rs.2270-2280/qtl.


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