Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 27 December 2013

Soyabean settled down -0.88% at 3809.5 on profit-taking as a stronger rupee made soymeal exports less attractive. Trading sentiments weakened further due to prospects of bumper production due to higher sowing in the current year. Besides, a losing trend in overseas markets on expectations of improved crop weather in South America and talk of decreased demand from China also put pressure on the Soyabean futures prices here. Buyers probably want to wait and watch before taking any decision amid reports of uncertain weather from overseas markets. Arrivals in major producing states like Madhya Pradesh, Maharashtra remained low and mandis remained closed in Rajasthan due to labour strike. Arrivals of soyabean in Madhya Pradesh state gained by 20000 bags of 100kg each to 130000 bags of 100kg each. Arrivals of soyabean in Maharashtra state gained by 25000 bags of 100kg each to 125000 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. At the Indore spot market in top producer MP, soybean dropped -15 rupee to 3909 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -2.52% to settled at 83120 while prices down -34 rupee, now Soyabean is getting support at 3789 and below same could see a test of 3768 level, And resistance is now likely to be seen at 3847, a move above could see prices testing 3884.