Commodity Trading Tips for Soyabean by Kedia Commodity

Soyabean on NCDEX settled up by 1.2% at 2953 on expectation of good demand from Industries and lower supplies in the spot market. Meanwhile, Soyabean prices edged lower in international markets as forecasts for ample global supplies kept the oilseed near a three-month low. Soyabean also weighed down by negative crush margins in China, which is an indicator that there could be a slowdown in purchases from the world's biggest importer of the beans. The US Department of Agriculture (USDA) recently raised its global production forecast for the 2016-17 fiscal, driven by higher output estimate for Brazil. In India too, production is set to rise sharply, after two years of drought. Over the past year, soyabean has lost about 24 per cent, after peaking at Rs. 4,200/per quintal at the beginning of the year. There was a slight uptick in November but prices have come under renewed pressure of late, falling nearly 9 per cent so far in 2017. Increase in global supplies to some extent is balanced by a rising demand for soyabean. A higher year-ending stock, however, is likely to keep soyabean in the bear’s grip for a while. The US, Brazil and Argentina are the top three soyabean producing countries in the world. According to the USDA, global production is expected to go up from 313 million tonnes in 2015-16 to 341 million tonnes in 2016-17. At the Indore spot market in top producer MP, soybean gained 18 Rupees to 3052 Rupees per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.39% to settled at 185990 while prices up 35 rupees, now Soyabean is getting support at 2926 and below same could see a test of 2900 level, And resistance is now likely to be seen at 2970, a move above could see prices testing 2988.

Trading Ideas:

# Soyabean trading range for the day is 2900-2988.

# Soyabean ended with gains on expectation of good demand from Industries and lower supplies in the spot market.

# USDA recently raised its global production forecast for the 2016-17 fiscal, driven by higher output estimate for Brazil.

# NCDEX accredited warehouses soyabean stocks dropped by 387 tonnes to 198890 tonnes.

# At the Indore spot market in top producer MP, soybean gained 18 Rupees to 3052 Rupees per 100 kgs.