Commodity Trading Tips for Soyabean by Kedia Commodity

Ajay Kumar Kedia 14 August 2013

Soyabean yesterday settled up 2.24% at 3064 gained after yesterday fall as buyers are active due to gains in overseas markets and low supplies are also working in favour of prices. Reports of aggressive buying from China in the coming days helped the overseas markets. In domestic markets, slight damage to standing crop is expected in some areas of Madhya Pradesh and Maharashtra. Arrivals were lower than the expectations as farmers delivered around 2500 bags of 100 kg each to Indore. Arrivals of soyabean in Maharashtra state dropped by -2000 bags of 100kg each to 10000 bags of 100kg each. As per the latest release from the USDA, the total global production of soybean in 2013-14 is projected lower at 281.72 million tonnes in August month, down 4.17 million tonnes from last month estimates. Lower soybean production projected for the United States is partly offset by an increase for India where higher harvested area more than offsets reduced yields caused by excessive July rainfall. The global soybean consumption for 2013/14 is projected lower at 237.93 million tonnes, down 1.54 million tonnes. The exports of the soybean projected higher at 107.40 million tonnes, up 0.19 million tonnes from the last month. Reduced global soybean production is only partly offset by lower crush leaving 2013/14 global soybean ending stocks down 1.9 million tons at 72.3 million. Global soybean stocks remain record high despite this month's reduction. technically market is under fresh buying as market has witnessed gain in open interest by 3.12% to settled at 73480 while prices up 67 rupee, now Soyabean is getting support at 3025 and below same could see a test of 2986 level, And resistance is now likely to be seen at 3088, a move above could see prices testing 3112. SOYABEAN