Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 22 May 2013

Soyabean yesterday we have seen that market has moved 0.11% taking cues from global markets, with support from almost exhausted local soybean supply. Currently, soybean demand is weak but low supplies are supporting the prices. Supplies are low as farmers are busy due to wedding season. The arrivals may show some improvement after the wedding season and it would last till the onset of monsoon in the region. Arrivals of soyabean in Madhya Pradesh state dropped by 5000 bags of 100kg each to 35000 bags of 100kg each. The months of May and June are usually the months when old stocks are towards depletion and demand remains good enough. Further, during June, it is the monsoon progress which largely determine the market sentiments. India's soy meal exports M/M fell 67% in April 2013, according to the Solvent Extractors' Association of India (SEA of India). US soybean crop is expected at a record 3.39 bn bushels, up from 3.015 bn harvested a year earlier, as per USDA (United States Department of Agriculture) estimates. The stock-piles is expected to rise to 265 mn bushels on 31st August 2014. Traders mentioned that Indian soyameal exporters have reported strong export demand of their products in April due to strong demand from Iran. Unofficial data suggested that Indian exporters have booked the orders of around 2.50-3 lakh tonnes of soyameal so far for the April month. At the Indore spot market in top producer MP, soybean dropped -1 Rs to 4054Re per 100 kgs. Market has opened at 3928 & made a low of 3910 versus the day high of 3939. The total volume for the day was at 27610 lots and the open interest was at 74420.Support for soyabean is at 3907 below that could see a test of 3894. Resistance is now seen at 3936 above that could see a resistance of 3952.