Commodity Trading Tips for Soyabean by KediaCommodity

Commodity Trading Tips for Soyabean by KediaCommoditySoyabean yesterday settled down -2.14% at 3112 due to restricted demand of millers at local mandies along with fragile export demand of soyameal exporters. Area coverage during Kharif 2013 is higher by 48.60 lakh ha compared to corresponding period of Kharif 2012. Higher coverage is due more area covered in state like Madhya Pradesh, Maharashtra and Rajasthan compare to last year Also, declining arrivals are supporting soybean prices in the physical markets. The soymeal prices have also shown recovery in the past two-three days. International market sentiments too are positive due to weather concerns in the US soybean growing areas. As per the latest report, at all India level, the sown area under kharif oilseeds is 110.27 lakh hectares vs 26.52 lakh ha during same period last year. Soybean has been sown at 42.86 LH vs 6.30 LH during same period last year. If weather further remains favorable in the crop growth stage, then country can expect a bumper production this year too, thus putting pressure on the market prices. This year the sown area is expected to increase in the states like Maharashtra, Rajasthan and Madhya Pradesh. Arrivals of soyabean in Madhya Pradesh state dropped by -20000 bags of 100kg each to 40000 bags of 100kg each. Arrivals of soyabean in Maharashtra state dropped by -5000 bags of 100kg each to 25000 bags of 100kg each. At the Indore spot market in top producer MP, soybean dropped  -55 rupee to 3799 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 12.98% to settled at 40910 while prices down -68 rupee, now Soyabean is getting support at 3094 and below same could see a test of 3077 level, And resistance is now likely to be seen at 3145, a move above could see prices testing 3179.

Trading Ideas:

Soyabean trading range for the day is 3078-3180.

Soybean dropped due to restricted demand of millers at local mandies along with fragile export demand of soyameal exporters.

Soyabean is weak as acreage has increased by four times

NCDEX accredited warehouses soyabean stocks dropped by 49 tonnes to 18044 tonnes.

At the Indore spot market in top producer MP, soybean gained  3 rupee to 3764 rupee per 100 kgs.