Commodity Trading Tips for Soyabean by Kedia Commodity

Ajay Kumar Kedia 12 December 2014

Soyabean settled down by -0.57% at 3311 on higher supply of the crop in international market. Soybean prices may fall further on oversupply after USDA raised forecast for soybean production while strong demand for US bean will cushion prices at lower level. The USDA increased 2014-15 United States soybean production forecast indicating robust supply in the world's biggest bean producer. The USDA increased US, the world's biggest bean grower, 2014-15 production estimates to 107.7 million tons compared to 106.9 million tons in the previous estimates and 91.4 million tons a year ago. However, USDA forecast for 2014-15 US soybean ending stockpiles at 410 million bushels compared to 450 a month ago and 92 million bushels a year ago. Brazil, the world's second biggest soybean producer, 2014-15 output may raise to 94 million tons unchanged from the previous month and 86.7 million tons a year ago, the USDA said. Argentina, world's third biggest soybean producer, 2014-15 crop output may increase to 55 million tons unchanged from the previous month and 54 million tons a year ago. On Dec 16, representatives of six Chinese soybean buyers are expected to sign agreements with US exporters to purchase an unspecified amount of soybeans at a ceremony in Chicago. At the Indore spot market in top producer MP, soybean dropped -8 rupee to 3312 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 4.95% to settled at 117440 while prices down -19 rupee, now Soyabean is getting support at 3302 and below same could see a test of 3294 level, And resistance is now likely to be seen at 3322, a move above could see prices testing 3334.