Soyabean yesterday settled down -1.62% at 2884 as high production prospects and weak global demand weighed on prices but downside was limited on low supplies and fear of some harm to crop due to incessant rains in growing areas. Supplies have reduced to half due to rains which is supporting the prices. Also, fear of loss to crop prevails in the domestic markets due to incessant rains the growing areas. As of now, the crop is in good condition but open weather and sunlight are needed immediately. Arrivals of soyabean in Madhya Pradesh state dropped by -35000 bags of 100kg each to 20000 bags of 100kg each. Arrivals of soyabean in Maharashtra state dropped by -5000 bags of 100kg each to 15000 bags of 100kg each. Arrivals of soyabean in Rajasthan state dropped by -10000 bags of 100kg each to 5000 bags of 100kg each. India's soybean output is projected higher at record 14.6 mn tons in 2012-13 when compared with 12.2 mn tons in 2011-12. Total nine Oilseeds production is pegged at 31 mn tons in 2012-13, slightly higher than 29.79 mn tons achieved in the previous year, according the fourth advanced estimates released by the Ministry of Agriculture. At the Indore spot market in top producer MP, soybean dropped -10 rupee to 3249 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 9.76% to settled at 67220 while prices down -47.5 rupee, now Soyabean is getting support at 2863 and below same could see a test of 2842 level, And resistance is now likely to be seen at 2923, a move above could see prices testing 2962.

Trading Ideas:

Soyabean trading range for the day is 2844-2964.

Soyabean ended with losses as high production prospects and weak global demand weighed on prices.

Downside was limited on low supplies and fear of some harm to crop due to incessant rains in growing areas.

Fear of loss to crop prevails in the domestic markets due to incessant rains the growing areas.

At the Indore spot market in top producer MP, soybean dropped -10 rupee to 3249 rupee per 100 kgs.