Soybean Arrivals Weak, Set To Get Major Support

Soybean trading range for the day is 3618-3764. According to Kedia Commodities, support for Soyabean is at 3646 below that could see a test of 3618. Resistance is now seen at 3719 above that could see a resistance of 3764.

At the Indore spot market in top producer MP, Soybean dropped -4 Rs to 3664 per 100 kgs. Market has opened at 3698 and made a low of 3663 versus the day high of 3736. The total volume for the day was at 130230 lots and the open interest was at 68810.

Soybean prices ended higher on last day’s trading session at Rs.3624 for May contract up by 0.82%. On the other hand, negative movement was noticed on CBOT platform where May futures ended at 1497.75 levels down by 0.62%.

Soyabean yesterday moved -0.7% on profit booking after prices gained on the back of Soymeal exports amid firm domestic demand.

Weak arrivals from Madhya Pradesh also supported prices. Further, despite the prediction of normal monsoon, there is speculation among the traders regarding its timely arrivals and spatial and temporal distribution.

Mustard Seed trading down on market rumours

As all agri commodities are trading down on rumours that India may put restrictions, RM Seed is no exception. However trading range for the day is 3944-4150. Market is looking to take support at 3980, a break below could see a test of 3944 and resistance is now likely to be seen at 4083, a move above could see prices testing 4150.

At Sriganganagar spot market in Rajasthan, the price edged down by -15 rupee to 4002.5 rupees per 20 kgs. Mustardseed Futures yesterday traded negative and settled 2.43% down at 4016 on profit booking after prices gained due to weak arrivals in major market along with strong export of Mustard meal.

Mustard seed prices elevated in last trading session with increasing demand for the commodity. May futures traded higher at Rs.4057 up by 0.67% to. The limited arrivals of the Mustard seed were noticed in the markets. The arrivals for entire Rajasthan were about at previous day levels of about 75,000 bags. 

Ref Soy Oil bullish on short term

Ref soyoil trading range for the day is 761.3-777.7. Market is looking to take support at 764.2, a break below could see a test of 761.3 and resistance is now likely to be seen at 772.4, a move above could see prices testing 777.7.

At the Indore spot market soyoil edged down by -5.2 rupee to 763.7 rupees 10 kgs. Ref soyoil eased on profit-taking, but the outlook remains bullish on the back of surging meal exports

According to Kedia Commodities Ref Soyoil yesterday traded with the negative node and settled -1.3% down at 767.1 after a rally to record highs triggered profit-taking, but the outlook remains bullish on the back of surging meal exports and shrinking supplies. 

Soy oil prices are looking less bearish in comparison to soybeans, as there are no reports of fresh demand for the edible oil in the current scenario. 

This year Soybean proved to be very lucrative and all time high market prices are seen which can encourage the farmers to increase the area under this crop. 

Mentha under pressure to press back to lower levels

Mentha oil trading range for the day is 1428.4-1458.2. Support for the Menthol is seen at 1433.3 and below could see a test of 1428.4. Resistance is now likely to be seen at 1448.2, a move above could see prices testing 1458.2.

Spot prices are now hovering in the rage of Rs. 1550-1650 per Kg. No major activity is running at spot front as every one is waiting for fresh crop to hit the market. 

Mentha oil Futures on Thursday further corrected and hit the 4% lower circuit breaker on expectations of a higher sowing due to expectations of a better realisation. The Spot as well as Futures settled 7.58% and 4% lower.

Arrivals in entire UP stand around 130 drums (1drum – 180 kgs) daily. Exports of Mentha during April 2011 to January 2012 witnessed a decline of 6% to 12,850 tonnes as compared to 13,550 tonnes in the same period last year.

According to trade sources, big market players are keeping prices under pressure before arrival season starts so that they can start buying at lower levels.