Soyabean yesterday we have seen that market has moved -0.5% on good rainfall in the top producing Madhya Pradesh state. Soybean crop prospects have changed after last week's rains. Market is now assessing potential rise in output. The western part of Madhya Pradesh state got 54 percent more rainfall than normal in the week ended August 15. Indian farmers have cultivated soybean on 10.54 million hectares as on Aug. 9, compared with 10.01 million hectares at the same time a year earlier. Good demand for edible oil, which leads to higher imports, will prevent the downside whereas improvement in rains in central India could cap the upside. India’s soyameal exports rose 21 per cent to 1,68,341 tonnes in July this year. The country had shipped 1,39,551 tonnes in the same month in 2011, Indore-based Soyabean Processors Association of India (SOPA) said in a statement. During April-July this year, exports rose 12 per cent to 8,24,208 tonnes from 7,37,522 tonnes in the four-month period of 2010-11. During October-July of the current oil year (October-September), soyameal exports fell 3 per cent to 36,10,040 tonnes compared with 37,35,369 tonnes in the same period of the 2010-11 oil year. At the Indore spot market in top producer MP, soybean dropped -8 Rs to 4498Re per 100 kgs. Market has opened at 3985 & made a low of 3925 versus the day high of 4004. The total volume for the day was at 70980 lots and the open interest was at 77740.Support for soyabean is at 3910 below that could see a test of 3878. Resistance is now seen at 3989 above that could see a resistance of 4036.

Trading Ideas:

Soybean trading range for the day is 3878-4036.

Soyabean continued weak trend on good rainfall in the top producing Madhya Pradesh state.

Western part of Madhya Pradesh state got 54% more rainfall than normal in week ended August 15.

NCDEX accredited warehouses soyabean stocks gained by 30 tonnes to 3055 tonnes.

At the Indore spot market in top producer MP, soybean dropped -8 Rs to 4498Re 100 kgs.