Commodity Trading Tips for Soyabean by Kedia Commodity

Ajay Kumar Kedia 24 July 2013

Soyabean yesterday settled down -0.63% at 3052 on higher sowing and good crop prospects. Buyers are not active as the crop condition is good and it is just 30-45 days away. Sowing finished in most soybean growing areas in the first week of July. Also, this year has seen higher acreage as area from crops like cotton shifted to soybean. Arrivals of soyabean in Madhya Pradesh state gained by 30000 bags of 100kg each to 50000 bags of 100kg each. However traders say that in some states due to excess rains some damage to the crop may happen. As per the Indian Government's 4th estimates on current year production, the soybean production is revised upward to 146.8 LT vs earlier estimate of 141 LT. Soybean sentiments at the CBOT are positive due to tight current supply. As per the latest release from Ministry of Agriculture, the total sowing acreage of soyabean reported at 103 lakh hectares against 54 lakh hectares in the same time last year. This is mainly due to strong sowing in both Madhya Pradesh and Rajasthan. Similarly, the total exports of soyameal were also declined sharply in the current month. The latest data compiled by the Solvent Extractors' Association of India (SEA of India ), the mustard meal exports during June 2013 is reporting at 0.96 lakh tonnes compared to 1.42 lakh tonnes in June 2013 i. e. down by 32.30%.At the Indore spot market in top producer MP, soybean gained 1 rupee to 3489 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 12.16% to settled at 46750 while prices down -19.5 rupee, now Soyabean is getting support at 3033 and below same could see a test of 3014 level, And resistance is now likely to be seen at 3078, a move above could see prices testing 3104.