Soyabean on NCDEX settled up by 0.1% at 3041 as investors covered short position at lower level amid supply worries from Argentina. Soybean arrivals were pegged at approximately 450,000 bags. Demand from processors was steady due to limited demand from domestic poultry sector. Crushers are not able to procure soybean below Rs 2,950/100kg from most of the market yards of the country as farmers are unwilling to sell below Rs 2,950-Rs 3,000/100kg so crushers have to procure soybean around Rs 3,000/100kg. Conab, the Brazilian government agency, has raised the Brazil’s 2016/17 soybean production forecast to 103.8 million tonnes from its December forecast of 102.45 million tonnes. The figure is slightly above the forecast of 103.5 million tonnes estimated in the Reuters poll. The raise is attributed to the favourable weather which has boosted the yield. Brazil’s 2015/16 soybean production stood at 95.4 million tonnes, when the production was hit due to the dry weather condtions. Further Brazil is likely to export 57 million tonnes of soybean in 2016/17 compared to 51.6 million tonnes in 2015/16. India is likely to produce over 11 million tons of soybean crops this season, according to the Soybean Processors Association of India (SOPA). Normal rainfall this year after two consecutive droughts has brought back the expectation of bumper sowing and production of soyabean in India. At the Indore spot market in top producer MP, soybean gained 17 rupee to 3044 rupee per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -1.41% to settled at 150060 while prices up 3 rupee, now Soyabean is getting support at 3031 and below same could see a test of 3021 level, And resistance is now likely to be seen at 3055, a move above could see prices testing 3069.

Trading Ideas:

Soyabean trading range for the day is 3021-3069.

Soyabean prices gained as investors covered short position at lower level amid supply worries from Argentina.

Conab has raised the Brazil’s 2016/17 soybean production forecast to 103.8 million tonnes from its December forecast of 102.45 million tonnes.

NCDEX accredited warehouses soyabean stocks gained by 1704 tonnes to 150045 tonnes.

At the Indore spot market in top producer MP, soybean gained 17 rupee to 3044 rupee per 100 kgs.