Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 31 January 2014

Soyabean settled up 1.46% at 3890 due to hope of higher demand for both soyabean and soyaoil during the ensuing marriage season. However, subdued trend in international markets and higher expectations of a bumper South American crop lowered demand for the domestic grown crop, capped the gains in soyabean prices to some extent. Global cues are weak as better climatic condition in Argentina increased higher output hopes. China the world's biggest bean consumer will go on a week long holiday from Jan 31 for Lunar New Year due to which spot demand and trading volume is expected to remain muted. This year due to extended rainfall the quality of soybean crop has been affected, which has hit farmers adversely. The Soybean Processors Association (SOPA) slashed its second estimates for soybean production to 12.2 tons in Kharif 2013 compared to 12.9 tons previous estimates and 12.1 tons previous year. Madhya Pradesh, India's biggest soybean growing state production estimates downward to 5.61 million tons compared to previous estimates of 6.26 million tons, data release from SOPA showed. US soybean export inspection came higher at 73.83 million bushels for the week ended Jan 23 compared to previous week 56.63 million bushel, the US Department of Agriculture (USDA) said. Private exporters reported soybeans sales of 183,000 tons to unknown destinations during the marketing year 2014-15, the USDA said. At the Indore spot market in top producer MP, soybean gained 20 rupee to 3990 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 3.93% to settled at 84330 while prices up 56 rupee, now Soyabean is getting support at 3837 and below same could see a test of 3784 level, And resistance is now likely to be seen at 3919, a move above could see prices testing 3948.