Commodity Trading Tips for Soyabean by Kedia Commodity

Soyabean on NCDEX settled down by -0.77% at 3098 on the expectation of higher supply in the global market. US farmers are expected to plant 90.5 million acres of soybeans this spring, topping the record high set last year by about 7 million acres. Arrivals were marginally higher to 415,000 bags. With the sharp rise in domestic soy meal prices fresh exports are not seen forthcoming. Moreover, the decline in production in Argentina is likely to get offset by a bigger production forecast in Brazil. The country is likely to export over 2 million tonnes of soymeal during the 2016-17 (Oct-Sept) marketing year due to bumper domestic harvest and a rise in prices in global markets, Solvent Extractors' Association of India President said. India soybean meal was last traded at $368 per tonne FAS Kandla versus $400 per tonne Argentina, which means India soybean meal is around $32 per tonne discount with rival Argentina. Soybean arrivals in the country totalled at 290,000 bags against 2.75 on the previous session. Good quality soybean which contains 10% moisture traded in the range of Rs 2,975-3,050 per 100kg against Rs 3,000-3,080 on previous session. The United States department of agriculture (USDA) trimmed 2016-17 United States soybean production forecast for January also cut the forecast for ending stockpiles compared to previous month, the department said in its World Agriculture Supply and Demand Estimates report. At the Indore spot market in top producer MP, soybean dropped -36 rupee to 3081 rupees per 100 kgs. Technically now Soyabean is getting support at 3083 and below same could see a test of 3068 level, And resistance is now likely to be seen at 3123, a move above could see prices testing 3148.

Trading Ideas:

# Soyabean trading range for the day is 3068-3148.

# Soyabean prices dropped on the expectation of higher supply in the global market.

# US farmers are expected to plant 90.5 million acres of soybeans this spring, topping the record high set last year.

# NCDEX accredited warehouses soyabean stocks gained by 2599 tonnes to 166650 tonnes.

# At the Indore spot market in top producer MP, soybean dropped -36 rupees to 3081 rupees per 100 kgs.