Soyabean settled down by -0.61% at 3940 on account of improved arrivals from the major producing belts against sluggish domestic demand. However, expectation of lower production due to erratic rainfall in the top two producing states, capped some losses. The arrivals of soybean from the new season crop may improve in coming month due to high prices in the spot market. As per COOIT, India is likely to produce 7.2 million tonnes of soybeans in 2015, a dip of 15.3 percent over the last year, because of patchy rains in the top two producing states, the head of an industry body told Reuters. However, as per the data release by SEA, for April- September period of the 2015-16 fiscal, soybean meal exports dropped sharply to 42,743 tonnes from 1,11,027 tonnes in the year- ago period. Reports of better-than expected U.S. crop-yields and a wave of farmer selling also weighed on the market, as some growers marketed newly harvested crops to take advantage of prices. USDA forecast 2015/16 global soybean production up 880,000 metric tons this month to 320.5 mt. Forecast of larger expected crops for Brazil and the European Union offset declines for the United States, India, and Ukraine. U.S. oilseed production for 2015/16 is projected at 116.1 million tons, up 0.7 million from last month on increased soybean, cottonseed, and peanut production. At the Indore spot market in top producer MP, soybean dropped -52 rupee to 3778 rupee per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -4.47% to settled at 66010 while prices down -24 rupee, now Soyabean is getting support at 3880 and below same could see a test of 3821 level, And resistance is now likely to be seen at 3991, a move above could see prices testing 4043.

Trading Ideas:

Soyabean trading range for the day is 3821-4043.

Soyabean prices ended with losses on account of improved arrivals from the major producing belts against sluggish domestic demand.

However, expectation of lower production due to erratic rainfall in the top two producing states, capped some losses.

NCDEX accredited warehouses soyabean stocks gained by 854 tonnes to 7334 tonnes.

At the Indore spot market in top producer MP, soybean dropped -52 rupee to 3778 rupee per 100 kgs.