Soyabean on NCDEX settled down by -0.48% at 2913 tracking weakness in spot demand on oversupply woes despite of hope of higher demand from crushers and in export market. Prices remained under pressure on expectation of bumper output in India and other top producers of the world. In, India production of yellow bean is expected to rise to 8.90-9.10 million tons as compared to 7.1 million tons in the previous year Production in the United States, Brazil and Argentina, the world's top producers, is also expected to rise. US Department of Agriculture reported that US farmers are likely to increase soybean acreage by 7.25 million acres to 89.48 million acres in 2016-17. In its first full forecast for 2017-18 grain production, the IGC saw soybean production hitting record levels thanks to rising sowings. "Preliminary projections for 2017-18 point to another bumper outturn on anticipated area gains in many growers," the IGC said. Data from the US Department of Agriculture showed US soybean planting intentions at a massive 89.5m acres, beating average analyst expectations of 88.2m acres, and above even the largest forecasts. The USDA saw soybean stocks at 1.74bn bushels, beating average expectations of 1.68bn bushels. Brazil’s 2016/17 soybean crop harvesting is 74% complete of the area planted, the figure is above 5 year average of 70% but below 76% harvested in the corresponding period last year, said AgRural. The weather is favourable for harvest and it is at full swing. At the Indore spot market in top producer MP, soybean gained 12 Rupees to 3042 Rupees per 100 kgs.Technically now Soyabean is getting support at 2896 and below same could see a test of 2880 level, And resistance is now likely to be seen at 2935, a move above could see prices testing 2958.

Trading Ideas:

Soyabean trading range for the day is 2880-2958.

Soyabean dropped tracking weakness in spot demand on oversupply woes despite of hope of higher demand.

Prices remained under pressure on expectation of bumper output in India and other top producers of the world.

NCDEX accredited warehouses soyabean stocks dropped by 1679 tonnes to 186561 tonnes.

At the Indore spot market in top producer MP, soybean gained 12 Rupees to 3042 Rupees per 100 kgs.