Soyabean on NCDEX settled down by -0.49% at 3031 due to ample supplies in the market as production during kharif is higher by more than 57% this season compared to last year. Soyabean prices weakened further by tracking lower prices in international markets as prospects for higher supply of the crop improved in South America. The United States department of agriculture (USDA) trimmed 2016-17 United States soybean production forecast for January also cut forecast for ending stockpiles compared to previous month, the department said in its World Agriculture Supply and Demand Estimates report. The USDA expects soybean output in US, the world's biggest bean grower, at 117.2 million tons in January compared to 118.7 million tons in the previous month while higher than 106.9 million tons a year ago. Heavy rains in Brazil’s top producing state of Mato Grosso have hampered the harvesting and raised the quality concern for the developing soybean crop. Imea farmers institute said, soybean harvesting in Mato Grosso, where the harvesting first started, was 11.9% complete by last week, extended 6% more than previous week. The Imea was expecting it to be 15% by now. Further, despite early planting, Brazil’s total soybean harvesting could reach only 2%. AgRural consultancy estimated that the 2016/17 Brazil soybean crop harvest reached 2.2% of the area up compared with 1.5% harvest in the same period last year and 1.2% in the five-year average. At the Indore spot market in top producer MP, soybean gained 5 Rupees to 3031 Rupees per 100 kgs.Technically now Soyabean is getting support at 3021 and below same could see a test of 3010 level, And resistance is now likely to be seen at 3044, a move above could see prices testing 3056.

Trading Ideas:

Soyabean trading range for the day is 3010-3056.

Soyabean prices dropped due to ample supplies in the market as production during kharif is higher.

Further pressure seen on prices tracking lower prices in international markets as prospects for higher supply crop improved in South America.

NCDEX accredited warehouses soyabean stocks gained by 4928 tonnes to 177825 tonnes.

At the Indore spot market in top producer MP, soybean gained 5 Rupees to 3031 Rupees per 100 kgs.