Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 14 August 2014

Soyabean settled up 2.27% at 3656 on the back of improved demand from mandis across M. P & Maharashtra. The soyabean prices improved further as planting lagged last year's acreage. The India's oilmeal exports fell 43 percent in July from a month ago to 115,094 tonnes as castormeal and ricebran meal sales slumped. As per the latest report by Ministry of Agriculture, kharif sowing area stands at 803.32 lakh hectare. It is reported that as on 8.8.2014, oilseeds is covered in 152.23 lakh ha. China, the world's largest soy buyer, imported 7.47 million tonnes of soybeans in July, up 17 percent from June and exceeding an earlier official forecast, figures from the General Administration of Customs of China showed. The USDA's forecast for a bumper soybean crop reflects near-perfect weather in the U. S. Midwest this season and an 11% increase in harvested acres of the oilseeds. U. S. soybean stockpiles in the 2014-15 season will more than triple from a year earlier, the USDA estimated, alleviating concerns about low inventories that have plagued food producers and other soybean buyers for several years. The global soyabean supplies are estimated higher at 304.69 million tonnes in 2014/15, down 0.10 million tonnes due to strong production in US. The data has reduced the Indian soyabean production by 0.60 million tonnes to 11 million tonnes in 2014-15. At the Indore spot market in top producer MP, soybean gained 55 rupee to 3977 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -8.96% to settled at 63470 while prices up 81 rupee, now Soyabean is getting support at 3596 and below same could see a test of 3535 level, And resistance is now likely to be seen at 3698, a move above could see prices testing 3739.