Wait for clearity to take position in soybean: Emkay

Emkay Commodities has come out with its report on soybean. According to research firm resistance is seen in soybean at Rs 4051 levels breach of this level then it can test Rs 4132. Support is at Rs 3971, breach of this level, then it could correct to Rs 3931 levels. Market is making whipsaw movement. So wait for more clarity to take position.

Soybean prices at Indore market moved up by Rs 8 /quintal to Rs 4240 /quintal in today’s trade session. Prices in Nagpur market have remained at around Rs 4794/quintal. Meanwhile, soybean prices at Kota market moved down by Rs 38 to Rs 4580 per quintal. Acreage under soybean crop (as on 30th Aug) was reported at 10.694 million ha, up by 3.70% (0.382 million ha) from same period last year. Good rains at soybean growing major regions to yield to good crop. Domestic market fundamentals like lean seasonal arrivals remain supportive for the prices. But higher acreage under soybean crop and improving weather is to keep the prices in check.

Soybean Oct’12, futures prices appreciated by 21 rupees to end at Rs 4019 levels Stoploss triggered for the suggested long position. Appreciation in the prices was not sufficient enough to breach the triangle breakout. Resistance is seen at Rs 4051 levels breach of this level then it can test Rs 4132 levels. Support is at Rs 3971 levels breach of this level, then it could correct to Rs 3931 levels. Market is making whipsaw movement. So wait for more clarity to take position.

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