Soyabean on NCDEX settled up by 1.96% at 3123 tracking firmness in overseas prices buoyed by strong Chinese demand for U. S. shipments. Soyabean also drew support from uncertainty about crop weather as the South American growing season gets underway. In its revised crop projection for kharif 2016, the Soyabean Processors Association of India (SOPA) has put India's soyabean crop at 114.9 lakh tonnes (lt) - about 5 per cent higher than the initial crop estimate of 108.8 lt. The increase in output is attributed to lower damage and better yield mainly in Madhya Pradesh and Maharashtra. The sowing area is recorded at 109.7 lakh hectares with over 90 per cent of the area falling in Madhya Pradesh, Maharashtra and Rajasthan. However, the revised crop projections by the industry are still lower than the Agriculture Ministry's estimates. In its first advanced estimates, the Agriculture Ministry had pegged the soyabean cropsize at 142.2 lakh tonnes, higher than last year's 85.92 lakh tonnes. The USDA's November WASDE report projected that U. S. soybean stocks are expected to grow from 197 million bushels to 480 million bushels. For soybeans, there is a general expectation that U. S. producers will increase acreage in the year ahead. An increase of about 5 million acres, to 88 million harvested acres, seems to be a common expectation right now. The extremely high soybean yields of the past three years raise some questions about a potential increase in the trend yield. At the Indore spot market in top producer MP, soybean gained 31 rupee to 3118 rupee per 100 kgs. Technically now Soyabean is getting support at 3088 and below same could see a test of 3052 level, And resistance is now likely to be seen at 3154, a move above could see prices testing 3184.

Trading Ideas:

Soyabean trading range for the day is 3052-3184.

Soyabean prices ended with gains tracking firmness in overseas prices buoyed by strong Chinese demand for U. S. shipments.

Soyabean also drew support from uncertainty about crop weather as the South American growing season gets underway.

NCDEX accredited warehouses soyabean stocks gained by 671 tonnes to 90820 tonnes.

At the Indore spot market in top producer MP, soybean gained 31 rupee to 3118 rupee per 100 kgs.