Commodity Trading Tips for Soyabean by Kedia Commodity

Ajay Kumar Kedia 19 August 2013

Soyabean yesterday settled up 0.79% at 3064 due to weak supplies in local mandies. Further, as per some reports the overall arrivals of the soyabean have been declined to 0.40-0.50 lakh bags, down 10-15% from the last week. The prices also got some support from a slight improvement in export demand for soyameal. Besides, a firming trend in overseas markets on sharp decline in global soyabean production projected by USDA, also influence the Soyabean prices. Indian farmers have grown soybeans on 11.88 million hectares, compared with 10.31 million hectares a year earlier. On the international market, soybean yield may be hurt over the next couple of weeks as weather turns drier in the crop belt and despite continued modest temperatures. The U. S. Department of Agriculture (USDA) that 58 percent of the soybean crop was setting pods, behind the 68 percent average. Arrivals of soyabean in Madhya Pradesh state gained by 25000 bags of 100kg each to 50000 bags of 100kg each. Arrivals of soyabean in Maharashtra state gained by 15000 bags of 100kg each to 25000 bags of 100kg each. Arrivals of soyabean in Rajasthan state gained by 18000 bags of 100kg each to 25000 bags of 100kg each. As per the SEA of India data, the export of oil meals during June 2013 is reported at 348,946 tons compared to 311,089 tons in June 2012 i. e. up by 12%. At the Indore spot market in top producer MP, soybean dropped -13 rupee to 3548 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -2.1% to settled at 80560 while prices up 24 rupee, now Soyabean is getting support at 3025 and below same could see a test of 2987 level, And resistance is now likely to be seen at 3098, a move above could see prices testing 3133.