Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 19 February 2014

Soyabean settled up 0.56% at 3977 tracking firmness in spot demand and overseas global prices on the speculation that the crop in Brazil, the world’s largest exporter may be smaller than estimated after dry weather. Further, poor availability of soybeans in spot markets and expectations of higher demand for both soyabean and soyaoil during the ensuing marriage season too supported the uptrend in prices. With soyabean prices declining substantially in the past fortnight and on account of harvesting of wheat, farmers have restricted supply of soyabean in State mandis. Due to extended rainfall in the key oilseed growing areas across Madhya Pradesh had hampered soy crop quality and quantity. Soybean production is to be lowered to 12.23 million ton from 12.98 million ton earlier, the Soybean Producers Association (SOPA) said. India soybean output estimates were slashed to 12.45 million ton in 2013-14 against 14.67 million ton in 2012-13, the Ministry of Agriculture in its second advance estimates. Total soybean output may fall by 5 million tons in South American region due to heat and dryness in Argentina and Brazil. Brazil, world's second biggest soybean producers, output may hit record of 90 million tons in 2013-14 compared to 89 million tons earlier estimates and 82 million tons in 2012-13, the USDA said in its World's Agriculture Supply and Demand Estimates (WASDE). At the Indore spot market in top producer MP, soybean gained 29 rupee to 4049 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 1.47% to settled at 109620 while prices up 22 rupee, now Soyabean is getting support at 3964 and below same could see a test of 3950 level, And resistance is now likely to be seen at 3987, a move above could see prices testing 3996.