Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 26 July 2013

Soyabean yesterday settled down -3.99% at 2884.5 tracking weakness in spot demand on good crop prospects and weak overseas markets. According to farmers, soybean crop is a month old and it is in really good condition. Keeping in view the present condition, new crop will reach markets in next 30-45 days. Arrivals were down due to rains in many parts of Madhya Pradesh and declining prices. Arrivals of soyabean in Madhya Pradesh state dropped by -15000 bags of 100kg each to 45000 bags of 100kg each. Arrivals of soyabean in Rajasthan state dropped by -10000 bags of 100kg each to 15000 bags of 100kg each. As per the latest release from Ministry of Agriculture, the total sowing acreage of soyabean as on 12th July 2013 reported at 103 lakh hectares against 54 lakh hectares in the same time last year. This is mainly due to strong sowing in both Madhya Pradesh and Rajasthan. Similarly, the total exports of soyameal were also declined sharply in the current month. The latest data compiled by the Solvent Extractors' Association of India (SEA of India), the mustard meal exports during June 2013 is reporting at 0.96 lakh tonnes compared to 1.42 lakh tonnes in June 2013 i.e. down by 32.30%. 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. At the Indore spot market in top producer MP, soybean dropped -169 rupee to 3232 rupee per 100 kgs. Now Soyabean is getting support at 2848 and below same could see a test of 2811 level, And resistance is now likely to be seen at 2958, a move above could see prices testing 3031.