Commodity Trading Tips for Soyabean by Kedia Commodity

Soyabean on NCDEX settled up 0.82% at 3066 on supply worries from Argentina and on hope of higher demand from oil crushers. Soybean rose in anticipation of rise in demand from oil millers and crushing units amid rise in soymeal exports and on Argentina supply worries. As per Argentine agricultural ministry soybean production reported at 56 million tons down from 58.8 million tons in last season. Prices of the bean were also up on expectation of increasing export demand following robust data for December month. The United States department of agriculture (USDA) trimmed 2016-17 United States soybean production forecast for January also cut forecast for ending stockpiles compared to previous month, the department said in its World Agriculture Supply and Demand Estimates report. The USDA expects soybean output in US, the world's biggest bean grower, at 117.2 million tons in January compared to 118.7 million tons in the previous month while higher than 106.9 million tons a year ago. USDA also expects 2016-17 US soybean ending stockpiles to fall to 420 million bushels in January compared to 480 million tons in the previous month while higher than 197 million bushels estimated in the same period a year ago. Conab, the Brazilian government agency, has raised the Brazil’s 2016/17 soybean production forecast to 103.8 million tonnes from its December forecast of 102.45 million tonnes. Technically market is under fresh buying as market has witnessed gain in open interest by 1.19% to settled at 151850 while prices up 25 rupee, now Soyabean is getting support at 3047 and below same could see a test of 3028 level, And resistance is now likely to be seen at 3088, a move above could see prices testing 3110.

Trading Ideas:

Soyabean trading range for the day is 3028-3110.

Soyabean prices gained on supply worries from Argentina and on hope of higher demand from oil crushers.

As per Argentine agricultural ministry soybean production reported at 56 million tons down from 58.8 million tons in last season.

NCDEX accredited warehouses soyabean stocks gained by 2429 tonnes to 152474 tonnes.

At the Indore spot market in top producer MP, soybean gained 27 rupee to 3071 rupee per 100 kgs.