Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 24 July 2014

Soyabean settled down -2.6% at 3712 on subdued exports of soymeal and weak cues from global markets. Sources said markets player fear lack of smooth supplies in the coming days due to low end stock and output worries on delayed sowing. According to market players, end stocks after sowing are likely to be not more than 10-15 lakh tonne. The supplies are slow as producers and stockiest are expecting a rally in prices in the coming season. Seventy-three percent of the U.S. soybean crop was rated in good or excellent condition as of July 20, as per USDA. Soybean prices tumbled 17 percent in the past 12 months. A lack of heat through the end of the Northern Hemisphere summer will limit threats during later stages of plant development as per several weather agencies. Bigger U.S. crops are helping to keep global food inflation in check, with the United Nations reporting a third monthly drop for prices in June. Arrivals of soyabean in Madhya Pradesh state gained by 13000 bags of 100kg each to 30000 bags of 100kg each. Arrivals of soyabean in Rajasthan state dropped by 2000 bags of 100kg each to 10000 bags of 100kg each. As per the latest date released by the Ministry of Agriculture, the oilseed sowing is around 38.07 lakh hectares compared to 149.82 lakh hectares. At the Indore spot market in top producer MP, soybean dropped -1 rupee to 4216 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -6.17% to settled at 70840 while prices down -99 rupee, now Soyabean is getting support at 3670 and below same could see a test of 3629 level, And resistance is now likely to be seen at 3784, a move above could see prices testing 3857.