Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 22 August 2013

Soyabean yesterday settled up 2.39% at 3325 on account of demand from local stockists amidst its limited arrivals. Further, anticipation of rising export demand on the back of fresh export enquiries has also fuelled the uptrend. Meanwhile, reports of fall in production in the US, Argentina and Brazil raised expectation of strong export demand, and encouraged traders to enlarge their positions in futures trade. However, the prices could fall again due to India's soybean production is likely to rise by as much as 18% to a record 13.34 million tonnes in 2013/14 from the year before as rain boost crops in key growing areas. Soybean Processors Association of India (Sopa) has also estimated 5-7 per cent losses to the crop but has expected the country to mitigate the losses since acreage has gone up. This year India has sown the crop on an area of 12.2 million hectare of which 6.5 million hectare is in Madhya Pradesh. As per the SEA of India data, the export of oil meals during June 2013 is reported at 348,946 tons compared to 311,089 tons in June 2012 i. e. up by 12%. However, the total export of oil meals during April-June 2013 is down and reported at 850,951 tons compared to 1,074,034 tons during the same period of last year. Traders are creating fresh buying in the market due to reports of fear of crop damage in some parts of its growing areas due to excess rains. However industry sources say that this year the crop production may remain higher by at least 18% at 13.34 million tons as compared to last year. Now Soyabean is getting support at 3249 and below same could see a test of 3172 level, And resistance is now likely to be seen at 3373, a move above could see prices testing 3420.