Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 24 December 2013

Soyabean settled up 0.18% at 3880.5 as concerns over likely drop in India's soybean production supporting commodity prices. India's soybean output in 2013-14 is likely to fall by around 14% from a year ago to 9.5 mn tons. Country's soy meal exports fell to 503,269 tons in November when compared to 517,103 tons year-on-year basis. Total oil meal exports stood at 560,648 tons in November, according to Solvent Extractors' Association of India (SEA). Arrivals of soyabean in Madhya Pradesh state dropped by 5000 bags of 100kg each to 125000 bags of 100kg each. Arrivals of soyabean in Maharashtra state gained by 25000 bags of 100kg each to 100000 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. World soybean 2013-14 production is estimated up 5% year-on-year basis at 285 mn tons, said International Grains Council (IGC) in its November report. End-season inventories are expected to recover by 13%, supported by improved availabilities in the major exporters. At the Indore spot market in top producer MP, soybean gained 38 rupee to 3962 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -10.71% to settled at 93910 while prices up 7 rupee, now Soyabean is getting support at 3864 and below same could see a test of 3847 level, And resistance is now likely to be seen at 3906, a move above could see prices testing 3931.