Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 13 June 2014

Soyabea Soyabean settled up 0.21% at 4304 on reduced availability in States such as Madhya Pradesh and Maharashtra. Excess rains last year had damaged the soyabean crop in these States and the quality was also affected. However, the soyabean processing industry believes that the increase in seed prices may not impact the acreage as about 80-85 per cent of growers use the seeds retained by them from last year’s crop for sowing. Farmers are eagerly waiting for the monsoon to set in. If rains are normal and arrive on time, we can expect a slight increase in acreage. A lower-than-expected crop last year resulted in a shortage of quality seeds this year. The Agriculture Ministry has pegged the shortage of certified and quality soyabean seeds at 69,616 tonnes across the country. The total requirement of soyabean seeds for kharif is pegged at 3.43 lakh tonnes, whereas the availability is estimated at 2.73 lakh tonnes, according to official sources. The Government has estimated soyabean output for 2013-14 at 11.94 million tonnes, lower than previous year’s 14.66 million tonnes. Arrivals of soyabean in Madhya Pradesh state dropped by 10000 bags of 100kg each to 25000 bags of 100kg each. Arrivals of soyabean in Maharashtra state dropped by 2000 bags of 100kg each to 18000 bags of 100kg each. Arrivals of soyabean in Rajasthan state gained by 2000 bags of 100kg each to 12000 bags of 100kg each. At the Indore spot market in top producer MP, soybean gained 19 rupee to 4364 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 8.51% to settled at 117910 while prices up 9 rupee, now Soyabean is getting support at 4268 and below same could see a test of 4234 level, And resistance is now likely to be seen at 4337, a move above could see prices testing 4372.