Commodity Trading Tips for Soyabean by Kedia Commodity

Ajay Kumar Kedia 5 August 2013

Soyabean yesterday settled down -2.13% at 2941.5 due to strong sowing acreage in the current year along with weak demand of soyameal in export market. As per the latest release from Ministry of Agriculture, the total sowing acreage of soyabean as on 26th July 2013 reported at 117 lakh hectares against 101.50 lakh hectares in the same time last year. This is mainly due to strong sowing in both Madhya Pradesh and Rajasthan. The spot prices have reported steady gains from the last three days due to crop damage news from Madhya Pradesh. However, surge in soyabean prices provided the opportunity to traders and stockiest to liquidate their old stocks in local mandies. Moreover, strong sowing progress of Kharif crop also added some bearish sentiments in the soyabean market. As per the latest release from Ministry of Agriculture, the total sowing acreage of soyabean as on 26th July 2013 reported at 118.76 lakh hectares against 103.06 lakh hectares in the same time last year. This is mainly due to strong sowing in both Madhya Pradesh and Rajasthan. Arrivals of soyabean in Madhya Pradesh state gained by 8000 bags of 100kg each to 15000 bags of 100kg each. Arrivals of soyabean in Rajasthan state dropped by -5000 bags of 100kg each to 3000 bags of 100kg each. At the Indore spot market in top producer MP, soybean dropped -11 rupee to 3407 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 3.44% to settled at 77970 while prices down -64 rupee, now Soyabean is getting support at 2910 and below same could see a test of 2879 level, And resistance is now likely to be seen at 2983, a move above could see prices testing 3025.