NCDEX soybean continues its meteoric climb

Soybean futures in the domestic markets continued to rally owing to reduced availability amid growing fears of potential sharp decline in the acreage in 2021 kharif season. August Futures are quoting at 9,650 rupees per 100 kg, a record high. Domestic prices too are at historic high. In Madhya Pradesh, soybean is selling in the range of 10,000-10,100 rupees per 100 kg.

Meanwhile, nobody but the end consumer is at the receiving end of higher prices while the government remains mum and prefers to keep the import duty on oilseeds unchanged. It is also keeping away from discussing the stock-limit on oilseeds which it had implemented earlier this month in pulses.

Potential trend in soybean –

The decline in the acreage in soybean this season will remain a crucial factor for maintaining a bullish tone until new arrivals commence. August futures on NCDEX could find support at 8920-8570 and face resistance at 10,000-10,300 levels. (CMP: 9415)

The other factor which will also determine the prices going ahead is the pattern of rainfall, import of edible oil, probable change in government policy relating to import duty, stock-limit.