Understanding Soybean Futures Trading:
Soybeans are the only the most accepted products in the whole world and mostly of uses, from feed and food to industrial materials. Commodity trading in soybean futures on a worldwide market scale is observed as a very profitable and gainful endeavor as the soybean products are particularly appreciated in the Asia and among the global natural food enthusiasts. Many traders can trade in soybean daily bases with the help of advisory company such as TRIFID RESEARCH. Then can provide trendy market Commodity Tips. Several publications and writer are now printed with the soy ink, which is suitable an increasingly popular option to petroleum-based inks.
Basically soybean is a summer crop; it always needs humid and hot climate to prosper. It is a little green plant borne by the soy seeds, it is similar to bush. The soybean crop always planted in the fertile ground and get mature in approx 2 months. If the soybean seed start to get mature, one by one leaves of the soybean plant start to devolve. This is the final stage soybean crop, after that the harvesting of this soybean crop is complete.
In early June, the soybean crop is generally sown in India i.e. The name of this crop Kharif crop. In a few states soybean crop cultivated 2 times a year. The September & October is the harvesting time period for crop in India. Soybean crop is highly dependent and fluctuate on rain and If the rainfall patterns is changing that the affects the production of soybean crop.
The market always sees the coming of the all soybean crops in August to September in United State and China, October to November in the India, January to February in the South America.
Soybean producing countries:
- United States
Production of soybean in India:
- Madhya Pradesh
- Uttar Pradesh
- Andhra Pradesh
Indian soybean market
Soybean plays the very important role or holds the position in Indian economic & agriculture and the wroth of these approximately Rs. 5000/- crores. According to leading producing countries, it always stands in the fifth position in the list regarding 7 million tons soybean production figures. Many brokers can provide NCDEX Tips for the better soybean market trading for daily purpose and help for making profit.
Madhya Pradesh has the show the way among the soybean crop producing states in India. According consumption of the soybean in India, it keeps the sixth position in the main leading consuming countries.
The total soybean production in India, approximately 10% to 12% its direct consumed and the rest is packed down to derive soy oil & soy meal. The Indian soybean meal is measured to be one of the best soybean meals and Asian & European countries wish to use it further than any soybean meal. Approximately 65% of soybean of the total produced export in the other countries. According to this soybean production India has turned out to be biggest exporters usually in the Asian countries.
The soybean meal exports to the countries.
Though soybean meal isn’t imported to satisfy the rising domestic demand, but this isn’t in the case of soybean oil. A big share of soybean oil consumed in India is highly imported from the Brazil, Argentina and US. In fact, soybean oil is not allowed to export in bulk quantity. Approximately 1.5 million tons of soybean oil is imported, which creates the availability of soybean oil in the country at approximately 2.5 million tons. Moreover the imports rate still at a rising level.
The rates of soybean market in Indian highly volatile because they based on the rates of the global market. As reference soy markets, the soy markets in Indore and the Mumbai are looked upon.
Market Influencing Factors
- Weather is the most importantly, through the pod bearing period.
- Rates of the competitive commodity products including oils.
- Movement in Rates in the global market.
- Pests & diseases.
- Fundamentals of the feed sector.
- Crush margin.
- Infections disturbing poultry & cattle.
Major trading centers of soybean
- Chicago Board of Trade (CBOT), Chicago-largest soy futures market.
- Dalian Commodity Exchange, China.
In India, soybean is traded at:
Basic Rules for Futures Traders:
- Use a systematic technique and always stick to it.
- Apply currency management methods to your trading.
- Do not overtrade.
- If you know them, where your profit aim get the position. And if the market opposite you so what your planning.
- Trade with the market trends, otherwise than trying to choose tops & bottoms.
- Don’t trade lots of markets, with small capital.
- Don’t just buy and sell the volatile contracts or agreement.
- Estimate the risk/reward ratio previous to putting a commodity trade on, then protect against the peril of holding it very long.
- Develop your trading techniques and before the commodity market opening to remove emotional reactions.
- Firstly, choose an entry & exit points and your goals. Subject your judgments to only minor modification during the trading session. Benefits are for those who work, not react. Don’t modify during the trading session unless you have a good reason.
- Always follow your plan, tips and technique. Once a position is fixed and stops are chosen, do not get out till that the stop is reached or fundamental cause for taking the trading position changes.
- Utilize many type of tips like Commodity Tips, MCX Tips & NCDEX Tips and technical signals as like charts to maintain the discipline – the huge majority of traders or investors are not sensitively equipped don’t be stay disciplined a few technical tools. Always trade with discipline to avoid impulse trading.
- Always use a much disciplined commodity trade selection system a systematic, organized process to avoid impulse or emotional trading.
- Don’t overstay a commodity market. If you can perform, you are limited to overstay a bad one also.
- If your performance is too good so always trade in all positions. The position should give an income by the end of the later day after the target position is taken.
- Always stable your mind several small losses and “sit still” for some big profit gains.