Commodity Trading Tips for Soyabean by Kedia Commodity

SoyabeanSoyabean yesterday settled up 0.32% at 3802 prices seen support in late hours due to an expected rise in demand. Low supplies and currency movements are supportive but weak overseas markets, good crop prospects are putting pressure on prices. Good crop prospects in India due to timely rains and expected early sowing is also considered bearish for the domestic prices. Arrivals of soyabean in Madhya Pradesh state dropped by 5000 bags of 100kg each to 40000 bags of 100kg each. Arrivals of soyabean in Maharashtra state gained by 5000 bags of 100kg each to 30000 bags of 100kg each. Arrivals of soyabean in Rajasthan state dropped by 5000 bags of 100kg each to 12000 bags of 100kg each. Chinese soybean imports might soar to 68 million metric tons in the 2013-14 marketing year, up from 58.2 million in the previous season. China's domestic soybean production will remain constrained by plantings, which are projected to decrease longer-term, squeezed by the country's land constraints. With consumption by feed groups rising by some 3% a year, more soybeans will need to be imported. Planting of soyabean is set to begin in the key producing State of Madhya Pradesh over the next couple of days as monsoon advances further into parts of central India. Last year, despite the delayed and erratic monsoon, soyabean was planted on a record 10.6 million hectares (mh) - a marginal increase over previous year's 10.3 mh. At the Indore spot market in top producer MP, soybean dropped -4 rupee to 3915 rupee per 100 kgs. Now Soyabean is getting support at 3782 and below same could see a test of 3762 level, And resistance is now likely to be seen at 3812, a move above could see prices testing 3822.

Trading Ideas:

Soyabean trading range for the day is 3762-3832.

Soyabean yesterday settled up as an expected rise in demand support prices.

Low supplies and currency movements are supportive but weak overseas markets, good crop prospects are putting pressure.

NCDEX accredited warehouses soyabean stocks gained by 534 tonnes to 17724 tonnes.