Sharekhan expects gains in soybean to extend short term
Sharekhan Commodities expects soybean prices to extend gains to Rs 1,800/2,000 in a period of one to two months, even after rising nearly 10 percent since last week.
By ET Online |
MUMBAI: Sharekhan Commodities expects soybean prices to extend gains to Rs 1,800/2,000 in a period of one to two months, even after rising nearly 10 percent since last week.
According to Mehul Agarwal, research analyst at Sharekhan Commodities, harvesting of soybean will be over by December. However, arrivals in comparison have diminished. The market is witnessing daily arrivals of 3-4 lakh bags compared to 10-12 lakh bags same period last year as farmers have withheld stock due following a sharp fall of 40 percent in prices since July.
���Prices may rise further if arrivals continue to be low in the coming days. India has contracted to ship around 12 lakh tonne of soymeal till December. This could add momentum to prices in the near term," Agarwal added.
In this backdrop, the brokerage has advised traders to initiate a buy at current levels placing a stop loss below Rs 1,516 for an initial target of Rs 1,830 while the gains can extend to Rs 2,000.
Currently, NCDEX soybean December futures is trading at Rs 1,650 per quintal, up Rs 125 from a week.
According to Mehul Agarwal, research analyst at Sharekhan Commodities, harvesting of soybean will be over by December. However, arrivals in comparison have diminished. The market is witnessing daily arrivals of 3-4 lakh bags compared to 10-12 lakh bags same period last year as farmers have withheld stock due following a sharp fall of 40 percent in prices since July.
���Prices may rise further if arrivals continue to be low in the coming days. India has contracted to ship around 12 lakh tonne of soymeal till December. This could add momentum to prices in the near term," Agarwal added.
In this backdrop, the brokerage has advised traders to initiate a buy at current levels placing a stop loss below Rs 1,516 for an initial target of Rs 1,830 while the gains can extend to Rs 2,000.
Currently, NCDEX soybean December futures is trading at Rs 1,650 per quintal, up Rs 125 from a week.
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