Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 2 January 2014

Soyabean settled down -0.54% at 3751 as sluggish demand at prevailing higher levels mainly led to decline in soyabean prices. Oil mills are not actively buying soybeans as there are limited soymeal exports orders for January. Arrivals of soyabean in Maharashtra state dropped by 50000 bags of 100kg each to 75000 bags of 100kg each. Arrivals of soyabean in Rajasthan state dropped by -5000 bags of 100kg each to 20000 bags of 100kg each. Weak soy product demand is probably behind the low buying interest. Trade, as a record large global soybean crop was forecasted in the USDA's December crop report. The USDA expects the world to produce 284.9 million tonnes of soybeans in 2013/14 due to increased Canadian and South American production. The government agency previously estimated that 283.5 million tonnes of soybeans would be grown this year. There was lack of buying support from millers and that pressurized the market. India's soybean production in 2013/14 is likely to drop 4.4 percent from the previous year to 10.23 million tonnes. 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. At the Indore spot market in top producer MP, soybean dropped -3 rupee to 3885 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 3.34% to settled at 125890 while prices down -20.5 rupee, now Soyabean is getting support at 3738 and below same could see a test of 3724 level, And resistance is now likely to be seen at 3764, a move above could see prices testing 3776.