Commodity Trading Tips for Soyabean by KediaCommodity

Ajay Kumar Kedia 22 January 2014

Soyabean settled up 0.16% at 3754 as bad weather conditions in Argentina triggered fears of lower crop yield amid robust demand from China. In central Argentina, a new round of extreme heat are expected to continue for the next few days which may reduce the available moisture needed for soybean crop which may hamper crop production. Argentina may produce 53.5 million tons compared to 49.3 million tons in 2012-13 season, the US Department of Agriculture (USDA) said. The oilseed prices were also supported after reports showed China imported US soybean indicating improved demand from the world's biggest bean consumer. Last week, US private exporters reported soybeans sales of 106,000 to China during the marketing year 2014-15, the US Department of Agriculture (USDA) said. Also, robust export inspection data from the world's biggest bean producer indicated improved demand for US soybean. US soybean export inspection came at 59.38 million bushel for the week ended Jan 9 compared to 58.79 million bushel a week ago, the US department of agriculture (USDA) said. Arrivals of soyabean in Madhya Pradesh state gained by 15000 bags of 100kg each to 90000 bags of 100kg each. Arrivals of soyabean in Maharashtra state dropped by -20000 bags of 100kg each to 70000 bags of 100kg each. At the Indore spot market in top producer MP, soybean gained 25 rupee to 3852 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.74% to settled at 95240 while prices up 6 rupee, now Soyabean is getting support at 3730 and below same could see a test of 3706 level, And resistance is now likely to be seen at 3783, a move above could see prices testing 3812.