Soyabean on NCDEX settled down by -1.05% at 3122 tracking weakness in spot demand and weak overseas cues. However, good crushing demand from the mills due to steady sales of soymeal, capped some losses. Crushers are carrying soybean stock of around 20-25 days so crushing is happening with maximum capacity. Arrivals across Madhya Pradesh were around 125,000-150,000 bags of 90 kilograms compared to 50,000 bags of 90 kilograms. Arrivals across Indore were 3,000 bags of 90 kilograms compared to 4,000 bags of 90 kilograms. 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. However, if the 2017 U. S. average soybean yield is near our calculated linear trend value of 47.5 bushels and acreage is increased as expected, the 2017 crop would total 4.18 billion bushels, 181 million bushels less than the 2016 harvest. Heavy rains over Argentina in October had delayed the soybean planting but have improved the soil moisture which has boosted the 2016/17 soybean production estimate by 2% to 55.3 million tonnes. At the Indore spot market in top producer MP, soybean dropped -11 rupee to 3120 rupee per 100 kgs. Technically now Soyabean is getting support at 3110 and below same could see a test of 3099 level, And resistance is now likely to be seen at 3138, a move above could see prices testing 3155.

Trading Ideas:

Soyabean trading range for the day is 3099-3155.

Soyabean prices ended with losses tracking weakness in spot demand and weak overseas cues.

Crushers are carrying soybean stock of around 20-25 days so crushing is happening with maximum capacity.

NCDEX accredited warehouses soyabean stocks gained by 1266 tonnes to 95191 tonnes.

At the Indore spot market in top producer MP, soybean dropped -11 rupee to 3120 rupee per 100 kgs.