Soyabean on NCDEX settled up by 0.1% at 2879 tracking firmness in spot demand on lower arrivals in local mandis. Large South American production this season has stoked expectations of ample global supply, while US farmers are expected to sow larger amounts of the oilseed next season. The pressure on soyabean prices has deepened after the US Department of Agriculture (USDA) recently raised its global production forecast for the 2016-17 fiscal, driven by higher output estimate for Brazil. In India too, production is set to rise sharply, after two years of drought. Over the past year, soyabean has lost about 24 per cent, after peaking at Rs. 4,200/per quintal at the beginning of the year. There was a slight uptick in November but prices have come under renewed pressure of late, falling nearly 9 per cent so far in 2017. Increase in global supplies to some extent is balanced by a rising demand for soyabean. A higher year-ending stock, however, is likely to keep soyabean in the bear’s grip for a while. The US, Brazil and Argentina are the top three soyabean producing countries in the world. According to the USDA, global production is expected to go up from 313 million tonnes in 2015-16 to 341 million tonnes in 2016-17. This revision came on the back of the USDA raising its outlook for Brazil’s 2016-17 crop from 104 million tonnes to 108 million tonnes. At the Indore spot market in top producer MP, soybean gained 4 Rupees to 3016 Rupees per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -3.36% to settled at 164740 while prices up 3 rupees, now Soyabean is getting support at 2866 and below same could see a test of 2854 level, And resistance is now likely to be seen at 2896, a move above could see prices testing 2914.

Trading Ideas:

# Soyabean trading range for the day is 2854-2914.

# Soyabean gained tracking firmness in spot demand on lower arrivals in local mandis.

# Soybean arrivals in the local mandis were estimated at 40,000-50,000 bags as compared to 125,000-135,000 bags on the previous day.

# NCDEX accredited warehouses soyabean stocks gained by 402 tonnes to 194062 tonnes.

# At the Indore spot market in top producer MP, soybean gained 4 Rupees to 3016 Rupees per 100 kgs.