Commodity Trading Tips for Soyabean by KediaCommodity

SoyabeanSoyabean settled down -0.01% at 3828 tracking weakness in spot demand amid higher global production estimates. The US Department of Agriculture has kept the Brazil output estimates unchanged and increased Argentina's estimate by 1 million tonne due to higher area at 54.5 million tonne. The USDA expects the world to produce 284.9 million tonnes of soybeans in 2013/14 due to increased Canadian and South American production. The government agency previously estimated that 283.5 million tonnes of soybeans would be grown this year. Soil-moisture levels in Argentina are aiding growing crops, while scattered rains this week will maintain adequate moisture. North-central parts of Brazil had rain over the weekend that helped boost moisture there. Prices were mostly pressured by the good start to the soybean growing season in South America. Arrivals of soyabean in Madhya Pradesh state dropped by -20000 bags of 100kg each to 130000 bags of 100kg each. Arrivals of soyabean in Maharashtra state gained by 25000 bags of 100kg each to 125000 bags of 100kg each. Arrivals of soyabean in Rajasthan state dropped by -5000 bags of 100kg each to 35000 bags of 100kg each. World soybean 2013-14 production is estimated up 5% year-on-year basis at 285 mn tons, said International Grains Council (IGC) in its November report. End-season inventories are expected to recover by 13%, supported by improved availabilities in the major exporters. At the Indore spot market in top producer MP, soybean gained 1 rupee to 3929 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 0.82% to settled at 127370 while prices down -0.5 rupee, now Soyabean is getting support at 3801 and below same could see a test of 3773 level, And resistance is now likely to be seen at 3852, a move above could see prices testing 3875.

Trading Ideas:

Soyabean trading range for the day is 3774-3876.

Soyabean ended with losses tracking weakness in spot demand amid higher global production estimates.

USDA has kept Brazil output estimates unchanged and increased Argentina's estimate by 1 million tonne due to higher area at 54.5 million tonne.

Arrivals of soyabean in Madhya Pradesh state dropped by -20000 bags of 100kg each to 130000 bags of 100kg each.

At the Indore spot market in top producer MP, soybean gained 1 rupee to 3929 rupee per 100 kgs.