Soybean Trading Range For The Day Is 3542-3712

Soybean trading range for the day is 3542-3712. Support for soybean is at 3583 below that could see a test of 3542. Resistance is now seen at 3669 above that could see a resistance of 3713.

NCDEX soybean futures surged sharply higher on 3rd consecutive trading session on account of lower arrivals in major mandis of Madhya Pradesh which is a major producing state of soybean in India coupled with strong export demand of domestic soy meal from Iran and Japan. As per US Sowing Planting Progress Report, soybean plantation was 12% as compared to 13% forecast as per Angel Commodities.

At Indore spot market, soybean gained 64 Rs to 3604 Re per 100 kgs. Market has opened at 3586 & made a low of 3586 versus the day high of 3671.5. The total volume for the day was at 124340 lots and the open interest was at 78510 according to Kedia Commodities.

As per the latest release from the International Grains Council, the total production of soybean in South America has been revised lower for the 2011-12 marketing year by 3.6 million metric tonnes to 115.9 million tons, down by almost 15% from the last year. This is mainly due to severe draught condition during the crop formation stage.

Go Short In Soy Oil: Angel

Ref soy oil trading range for the day is 768.77-786.47. The market is looking to take support at 772.2, a break below could see a test of 768.8 and where as resistance is now likely to be seen at 781.1, a move above could see prices testing 786.5.

Acoording to Angel Commodities, 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. Soy oil prices could drop in tandem with palm oil prices coupled with some corrections in Soybeans at the international market. Going short in soy oil is the recommendation by Angel.

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.

At the Indore spot market soyoil edged up by 0.7 rupee to 771.75 rupees 10 kgs. In yesterday's trading session Ref soy oil has touched the low of 774.15 after opening at 778.6, and finally settled at 775.7. 

Mustard Prices Could Go High But At Restricted levels

 RM seed trading range for the day is 3985-4129. Market is looking to take support at 4017.3, a break below could see a test of 3984.7 and where as resistance is now likely to be seen at 4089.3, a move above could see prices testing 4128.7.

Poor crop conditions in Europe might divert the international buyers of mustard seed meal towards Indian market. The total arrivals of mustard seed increased by 30,000 bags at 2 lakh bags in major mandies. In the Sri Ganganagar spot market in Rajasthan the price edged up by 78.75 rupee to 3946.25 rupees per 20 kgs.

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.

NCDEX May mustard seed futures traded higher as improved demand from millers and stockiest coupled with lower production estimates of RM seed this year (down about 15%) as compared to last year.

Prices could further trade at higher levels but the gains may be restricted with fall in soy complex prices. For the day we would suggest for wait and watch strategy in this commodity.