Commodity Trading Tips for Soyabean by Kedia Commodity

Soyabean on NCDEX settled down by -0.75% at 2897 on ample supply in the domestic spot market. Further, favorable growing weather in South America stoked expectations of ample global supply, also influenced soyabean prices. The production is expected to be higher this year and the oil millers active at lower prices so that they can have parity to export soy meal at competitive rates. The Soybean Processors Association of India has raised the estimate for soy meal exports in 2016-17 (Oct-Sep) to 1.8 mt from 1.0 mt projected earlier. Market Participants are looking to acreage forecasts from the USDA's annual outlook forum this week to gauge an expected shift from corn towards soybeans US soybean crushers crushed higher than the market expectations in January, third highest January crush on record, said National Oilseed Processors Association. NOPA reported that its members have processed 160.621 million bushels during January, up from 150.453 million bushels during the corresponding period last year and also up from 160.176 million bushels in December 2016. US soy meal shipments stood at 891,143 tons up from 686,493 tons during the corresponding period last year but down from 949615 tons in December 2016. European Union soybean imports in the 2016/17 season had reached 8.2 million tonnes by Feb. 14, down 4 percent from 8.6 million at the same point last season, official data showed. At the Indore spot market in top producer MP, soybean dropped -17 Rupees to 2961 Rupees per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -0.87% to settled at 200080, now Soyabean is getting support at 2870 and below same could see a test of 2842 level, And resistance is now likely to be seen at 2923, a move above could see prices testing 2948.

Trading Ideas:

# Soyabean trading range for the day is 2842-2948.

# Soyabean ended with losses on ample supply in the domestic spot market.

# The production is expected to be higher this year and the oil millers active at lower prices.

# NCDEX accredited warehouses soyabean stocks gained by 645 tonnes to 211006 tonnes.

# At the Indore spot market in top producer MP, soybean dropped -17 Rupees to 2961 Rupees per 100 kgs.