Soybeans plummet after USDA report showed production in India increased 8%

yesterday came in -0.44% to 6,066 on profit reserve and after USDA’s November monthly report showed soybean production in India rose 8% mo to 11 , 9 million tonnes. However, the decline was limited amid growing demand for soybean meal, transportation bottlenecks and labor shortages. The US Department of Agriculture has confirmed private sales of 256,930 tonnes of US soybeans to unknown destinations. The announcement follows rumors this week that China was buying US soybeans. The USDA also reported export sales of US soybeans during the week ended Nov. 4 at 1.289 million tonnes, in line with trade expectations of 950,000 to 1.8 million tonnes.

China has reserved 939,300 tonnes and shipped 2.34 million tonnes. Demand from oil mills increased in a context of low arrivals. The government is very cautious about reviewing the implementation of oilseed and edible oil stock limits, which keep prices under control in the country. According to SEA, soybean meal exports fell sharply to 5,831 tonnes in September this year, from 68,576 tonnes in the same period a year ago. Support is seen after weaker-than-expected soybean harvests in major producing states of Indiana, Iowa, Kansas and Ohio triggered a surprise drop in crop prospects in the United States. Despite the reduced soybean crop forecast, the projection for national ending stocks increased due to weakening export demand for US supplies. In Indore’s spot market in the top producer MP, soybeans gained 119 rupees at 5,994 rupees per 100 kg.

Technically the market has been in liquidation for a long time as the market saw an open interest decline of -4.58% to settle at 76510 while prices fell by -27 rupees, now soybeans are getting support at 5990 and below it could see a test of 5913 levels, and resistance should now be seen at 6147, a move above could see prices testing 6227.

Business ideas:
# The soybean trading range for the day is 5913-6227.
# Soybeans fell on profit reservation and as soybean production in India increased 8% month-on-month to 11.9 million tonnes.
# However, the downsides are limited against a backdrop of growing demand for soybean meal, transportation bottlenecks and labor shortages.
# USDA has confirmed private sales of 256,930 tonnes of US soybeans to unknown destinations.

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