Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 7 February 2014

Soybean ended with flat node on lack of oilseed availability in the domestic market amid profit booking at higher. Bean supplies in the local mandis are weak which will support the prices. Demand from the oil crushers is good. However, higher arrivals of the bean are capping gain. Arrivals across Madhya Pradesh were about 75,000-100,000 bags of 90 kilograms each compared to 50,000-75,000 bags of 90 kilograms. US weekly soybean export inspection data came at 45.4 million bushels to overseas buyers in the week that ended on Jan 30, 15% higher than last year the US Department of Agriculture (USDA) said in a report. Sources said domestic trade has been dull due to opposition of Food Safety and Standards Act. But the state government has assured 6 months extension in its implementation the trade would gains pace soon. Wednesday, farmers delivered around 60,000 bags of 100 kg each to Madhya Pradesh. In Indore, the arrivals were around 2000 bags of 100 kg each. India soymeal exports plunged 41% in the first month of the New Year as extended rainfall had adverse affected crop quantity and quality which hampered arrivals and crushing. SOPA in its second estimates reports slashed soybean production to 12.2 tons in Kharif season 2013 compared to 12.9 tons previous estimates and 12.1 tons previous year. At the Indore spot market in top producer MP, soybean gained 2 rupee to 4032 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -2.04% to settled at 113080 while prices down -3 rupee, now Soyabean is getting support at 3865 and below same could see a test of 3852 level, And resistance is now likely to be seen at 3894, a move above could see prices testing 3910.