Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 22 April 2013

Soyabean yesterday we have seen that market has moved -1.5% due to profit booking amid slowdown in meal exports. Lower soybean supplies are supporting prices. Oil mills are getting soymeal exports orders, but they are finding difficulties in procuring soybean from the spot market. India's soymeal exports in April are likely to fall to 200,000 tonnes, down 36 percent from a year earlier, unless buying from Iran improves. As per the latest WASDE report released by USDA, soybean production in Argentina and Brazil is kept unchanged at 515 and 835 LT respectively. World soybean ending stocks are increased to 626 LT vs 602 LT. USA ending stocks are 125 million bushel. China, the world's top soybean buyer, imported 3.84 million tons of the oilseed in March, up 32.4 percent from February but down 20.5 percent from a year ago as port congestion in Brazil delayed some shipments. However it is likely to import less this year, as per news sources. As per the data released by SEA of India, the export of oilmeals during March 2013 is reported 430,407 tons compared to 628,337 tons in March 2012 i.e. down by 32%. The total export of oilmeals during April 2012 to March 2013 has reduced and reported at 4,846,013 tons compared to 5,599,098 tons during the same period of last year i.e. down by 13%. Arrivals of soyabean in Madhya Pradesh state dropped by -10000 bags of 100kg each to 35000 bags of 100kg each. Arrivals of soyabean in Maharashtra state gained by 5000 bags of 100kg each to 35000 bags of 100kg each. At the Indore spot market in top producer MP, soybean dropped -43 Rs to 3998Re per 100 kgs. Market has opened at 3871 & made a low of 3811 versus the day high of 3894. The total volume for the day was at 57140 lots and the open interest was at 91600.Support for soyabean is at 3789 below that could see a test of 3758. Resistance is now seen at 3872 above that could see a resistance of 3924.