Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 11 February 2014

Soyabean settled up 1.46% at 3886 on hopes of higher demand for both soyabean and soyaoil during the ensuing marriage season. US 2013-14 ending stockpiles is expected to be slashed to 143 million bushels compared to 150 million bushels earlier while Argentina harvesting estimates may be trimmed to 54 million tons of soybean in 2013-14 compared 54.3 million tons earlier, various surveys showed. Demand from the oil crushers is good. However, higher arrivals of the bean are capping gain. US weekly soybean export inspection data came at 45.4 million bushels to overseas buyers in the week that ended on Jan 30, 15% higher than last year the US Department of Agriculture (USDA) said in a report. India soymeal exports plunged 41% in the first month of the New Year as extended rainfall had adverse affected crop quantity and quality which hampered arrivals and crushing. SOPA in its second estimates reports slashed soybean production to 12.2 tons in Kharif season 2013 compared to 12.9 tons previous estimates and 12.1 tons previous year. India soymeal exports in January fell to 364,000 tons as compared to 620,000 tons for the same period year ago, filling from the Soybean Processors Association (SOPA) of India showed. Arrivals of soyabean in Madhya Pradesh state dropped by -65000 bags of 100kg each to 35000 bags of 100kg each. At the Indore spot market in top producer MP, soybean gained 9 rupee to 4007 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -4.7% to settled at 111240 while prices up 56 rupee, now Soyabean is getting support at 3851 and below same could see a test of 3816 level, And resistance is now likely to be seen at 3905, a move above could see prices testing 3924.