Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 28 August 2014

Soyabean settled down -0.12% at 3335 as pressure seen on an outlook for record U.S. production. As per the latest Kharif sowing survey report published by Ministry of Agriculture, the total sown area as on now, as per reports received from States, stands at 935.06 lakh hectare as compared to 975.87 lakh hectare at this time last year, which is a significant progress due to steady rainfalls in most belts. The oilseeds area has increased to 168.28 lakh ha compared to 183.31 lakh ha of last year. Soybean area has increased to 109.09 lakh ha., which is significantly above the 5 year average of 95.7 lakh ha but still lower than last year’s high of 121.31 lakh ha. Arrivals of soyabean in Maharashtra state dropped by 1000 bags of 100kg each to 8000 bags of 100kg each. The prices will remain under pressure as there has been some good sowing progress. The international markets closed on a bearish note with record crop outlook on good weather forecasts. As per IMD the deficiency rainfall deficiency remained at 18% as on 26th Aug, from south west monsoon. However, increase in rainfall activity can be seen in during the later part of the week. India's soybean sowing has been completed and crop is at the flowering stage but it requires rains after 10-15 days. At the Indore spot market in top producer MP, soybean gained 8 rupee to 3757 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -0.64% to settled at 65490 while prices down -4 rupee, now Soyabean is getting support at 3314 and below same could see a test of 3294 level, And resistance is now likely to be seen at 3361, a move above could see prices testing 3388.