Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 23 October 2013

Soyabean yesterday settled up 1.95% at 3588 due to low supplies and also domestic demand is also favourable due to festivals. Good soybean supplies will give pace to crushing and lead to smooth supplies. Prices may remain under pressure if good quality crushable supplies reach market in the coming days. Sources said markets are witnessing more of low quality soybean arrivals at present. Currently, there are two rates in physical markets based on soybean quality. One price range is for damaged, spotted and high moisture soybean and other is good grading quality soybean. Arrivals of soyabean in Madhya Pradesh state gained by 50000 bags of 100kg each to 550000 bags of 100kg each. Arrivals of soyabean in Maharashtra state gained by 25000 bags of 100kg each to 225000 bags of 100kg each. Around 80% new crop which is reaching the markets either has high moisture content or is damaged. Also, data released by Soybean Processors Association of India (SOPA) does not show any major increase in production in Kharif 2013 as expected previously due to increased acreage. According to SOPA's first crop survey report, soybean production in India in Kharif 2013 is seen at 129.832 lakh tonne compared with 126.775 lakh tonne last season. Area under soybean had increased to 120.327 lakh hectares from 106.948 lakh hecartes last year. At the Indore spot market in top producer MP, soybean gained 19 rupee to 3517 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -4.96% to settled at 107050 while prices up 68.5 rupee, now Soyabean is getting support at 3539 and below same could see a test of 3490 level, And resistance is now likely to be seen at 3614, a move above could see prices testing 3640.