Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 2 January 2013

Soyabean yesterday traded with the positive node and settled 0.64% up at 3294.50 opened strong in spot Indore mandi today on better buying support against poor availability's. Pressue seen yesterday as prices dropped in international at CBOT due to ongoing uncertainty in policy environment. US government is expected to make some decision regarding Tax structure and its spending. CBOT soybean is likely to correct further in near future. In Indian physical markets too lackluster trade was seen and prices remained stable due to steady demand. For the coming year the supply fundamentals seems in favor of bears as production prospects are better in Brazil and Argentina. Further, the importers like China are not in hurry to buy huge quantity. Technically CBOT soybean seems weak from medium term point of view and a major correction is due in near future. In physical markets arrivals are thin in mandis amidst steady demand. Soy DOC export demand is steady. As per USDA WASDE report, 2012-13 world soybean end stocks are estimated at 599 LT vs 600 LT estimated in November report. Argentina crop is estimated at 550 LT while Brazil crop is estimated at 810 LT. China crop is estimated at 126 LT. All these estimates are unchanged from the previous report. The report seems to be neutral as no major change is made in the supply situation. As per USDA WASDE report, 2012-13 world soybean end stocks are estimated at 599 LT vs 600 LT estimated in November report. Argentina crop is estimated at 550 LT while Brazil crop is estimated at 810 LT. China crop is estimated at 126 LT. The report seems to be neutral as no major change is made in the supply situation. Today market is likely to trade up in the morning hours however later on prices may fall again. In physical markets arrivals are thin in mandis amidst steady demand. At the Indore spot market in top producer MP, soybean gained 3 Rs to 3317Re 100 kgs. In yesterday's trading session Soyabean has touched the low of 3272 after opening at 3285, and finally settled at 3294.5. For today's session market is looking to take support at 3276, a break below could see a test of 3258 and where as resistance is now likely to be seen at 3308, a move above could see prices testing 3322.