Soyabean on NCDEX settled down by -0.71% at 2935 on oversupply woes after the government reported higher output. However downside seen limited amid higher soymeal demand hope as Indian meal prices are competitive in the export market. Agriculture department in second advance estimates pegged 2016-17 soybean crop at 14.125 million tons as compared to 8.570 million tons reported in the previous year. In addition to this, lower demand from poultry farm is also expected to keep pressure on the prices as broiler chicken prices in retail market is mostly ruling flat as the demand from consumers is limited. As of now the poultry farmers are making profit of around 5% due to which they are reluctant to procure soymeal at higher level. Soymeal is the major input cost for poultry farmers and procuring soymeal at higher level will reduce their profit margin or may incur loss also, which is denting demand for yellow meal. US soybean crushers crushed higher than the market expectations in January, third highest January crush on record, said National Oilseed Processors Association. NOPA reported that its members have processed 160.621 million bushels during January, up from 150.453 million bushels during the corresponding period last year and also up from 160.176 million bushels in December 2016. US soy meal shipments stood at 891,143 tons up from 686,493 tons during the corresponding period last year but down from 949615 tons in December 2016. At the Indore spot market in top producer MP, soybean dropped -18 Rupees to 2978 Rupees per 100 kgs. Technically now Soyabean is getting support at 2919 and below same could see a test of 2904 level, And resistance is now likely to be seen at 2956, a move above could see prices testing 2978.

Trading Ideas

# Soyabean trading range for the day is 2904-2978.

# Soyabean prices dropped on oversupply woes after the government reported higher output.

# Agriculture department in second advance estimates pegged 2016-17 soybean crop at 14.125 million tons.

# NCDEX accredited warehouses soyabean stocks gained by 5408 tonnes to 212861 tonnes.

# At the Indore spot market in top producer MP, soybean dropped -18 Rupees to 2978 Rupees per 100 kgs.