Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 23 January 2014

Soyabean settled flat after yesterday's gain due to weak arrival in mandis, trading of soyabean in local mandis could not take place, as traders refused to buy substandard quality soyabean and other grains forcing farmers to agitate. Market player are hoping for a revival in demand for both soyabean and soya oil during the marriage season. The India soybean crop is reduced 0.5 million tons to 11.8 million as excessive rainfall during much of the growing season reduced yield potential, said the United States Department of Agriculture (USDA). Argentina, the world's third-largest bean producer, may harvest 53.5 million tons in 2013-14 compared to 49.3 million tons in 2012-13 season, the US Department of Agriculture (USDA) said. Bumper crop in South America and weak soymeal export prospects in India in combination may prove bearish for soybean complex in the coming months. India soybean prices could be adversely impacted by higher supplies, and lower demand from solvent extractors. Uncompetitive exert quotes is hitting soymeal exports and thus extractors are not buying soybean aggressively. Additionally, the commencement of Rabi oilseeds harvesting in February will lead to increase in supplies of mustard seed and a spillover effect can also be seen on the domestic soybean prices. At the Indore spot market in top producer MP, soybean dropped -10 rupee to 3842 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.24% to settled at 90840 while prices up 2 rupee, now Soyabean is getting support at 3730 and below same could see a test of 3702 level, And resistance is now likely to be seen at 3773, a move above could see prices testing 3788.