Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 17 April 2013

Soyabean yesterday we have seen that market has moved -2.36% tracking weakness in spot demand amid a slowdown in meal exports. Lower level buying is supporting soybeans, but it is difficult for prices to sustain at higher level. India's exports of oil meals for March 2013 is reported at 430,407 tons when compared to 628,337 tons in March 2012, a fall of 32%, according to Solvent Extractors Association of India (SEA). The total exports of oil meals during April 2012 to March 2013 has reduced and reported at 4,846,013 tons compared to 5,599,098 tons during the same period of last year, a fall of 13%, as per the data released by SEA. China, the world's top soybean buyer, imported 3.84 mn tons of the soybean in March, up 32.4 percent from February but down 20.5 percent year on year basis, according to the sources. US soybean inventories on August 31 would total 125 mn bushels or 3.39 mn tons, down from 169 mn a year earlier, according to the recent data released by USDA. Arrivals of soyabean in Maharashtra state gained by 5000 bags of 100kg each to 35000 bags of 100kg each. Indian soymeal suppliers are renegotiating deals with Iranian buyers for April and May shipments as a rally in soybean prices in the south Asian country has erased margins for exporters. At the Indore spot market in top producer MP, soybean dropped -23 Rs to 4000Re per 100 kgs. Market has opened at 3824 & made a low of 3730 versus the day high of 3860. The total volume for the day was at 160260 lots and the open interest was at 107090. Support for soyabean is at 3700 below that could see a test of 3650. Resistance is now seen at 3830 above that could see a resistance of 3910.