Commodity Trading Tips for Soyabean by Kedia Commodity

Ajay Kumar Kedia 1 July 2013

Soyabean yesterday settled up 0.65% at 3185 in physical markets on gains in overseas markets. Gains in overseas markets gave way to some improvement in buying. Some traders also feel that minimum support price hike by the government helped the prices. Arrivals of soyabean in Madhya Pradesh state gained by 10000 bags of 100kg each to 75000 bags of 100kg each. Arrivals of soyabean in Maharashtra state gained by 10000 bags of 100kg each to 40000 bags of 100kg each. Moreover, bearish international cues also added some pressure on the commodity. As per the latest release from the United States Department of Agriculture (USDA ) , the total global production of soyabean in 2013-14 is projected marginally down from the last month to reported at 285.30 million tonnes. This is mainly due to weak supplies from Brazil. The global soyabean consumption for 2013/14 is reduced to 239.17 million tonnes due to weak crushing demand. However, soybean acreage in the country is expected rise on favourable monsoon rain fall. Good monsoon followed by a rise in soybean sowing is expected to pressurise the commodity movement to some extent in the long term. Soybean acreage in India is expected to go up by 5-7% this year, according to Soybean Processors Association of India (SPAI). In 2012 (kharif crop) the total area under soybean crop was 10.75 mn hectare (ha). Last year, the total area under the soybean crop in Madhya Pradesh was 5.813 mn ha while Maharashtra cultivated in an area of 3.212 mn ha, according to SOPA. At the Indore spot market in top producer MP, soybean gained 34 rupee to 3724 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by % to settled at while prices up 20.5 rupee, now Soyabean is getting support at 3151 and below same could see a test of 3118 level, And resistance is now likely to be seen at 3236, a move above could see prices testing 3288.