Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 23 December 2013

Soyabean settled up 1.1% at 3877 on account of improved demand of the commodity amidst its dwindling arrivals in the mandis. Sentiment improved further due to a slight improvement in export demand for soyabean and soymeal. Meanwhile, exports of Soybean meal during November, 2013 was 5.19 lac tons as compared to 5.17 lac tons in November, 2012. Arrivals of soyabean in Maharashtra state dropped by -5000 bags of 100kg each to 75000 bags of 100kg each. Global soybean consumption in 2012-13 is projected at a record 270.47 mn tn by the USDA, however this is only a 4.86 percent year-on-year rise and represents a relatively modest rate of growth in world use in comparison with earlier periods. This is mostly attributed to a less pronounced expansion of domestic demand in China-in part due to an outbreak of avian influenza-and a contraction in US consumption. Soybean output which was earlier estimated at record 129.83 lakh tonnes (tn) by the SOPA has been revised downward to 122.35 lakh tn. Although SOPA's estimates stands much below the farm ministry first advance estimates of 156.81 lakh tonnes released in Sept'13, it still remains higher than the one observed last year, thanks to remunerative prices which boosted farmers to opt for this lucrative crop. At the Indore spot market in top producer MP, soybean gained 15 rupee to 3924 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 0.43% to settled at 105210 while prices up 42 rupee, now Soyabean is getting support at 3850 and below same could see a test of 3823 level, And resistance is now likely to be seen at 3894, a move above could see prices testing 3911.