Soyabean yesterday we have seen that market has moved 1.59% tracking a rally in the U.S. market on an estimated drop in grains output and on thin supply of soybeans in local spot markets. Early reports from a major crop tour indicated that soybeans in South Dakota were smaller than expected and had fewer pods then average. The trade is expecting good/excellent crop condition ratings to rise 1 percent in this afternoons report. The forecast this week calls for a chance of showers in parts of the US Midwest but accumulation is expected to be light and cover only 20-30% of the growing region. Cash soybean basis was steady in the Gulf of Mexico but export and domestic crush demand remain supportive to soybean futures. Chicago new-crop soybean rose to a contract high gaining for a third consecutive session buoyed by expectations of poor yields after a devastating drought in the U.S. grain belt. The drought in the United States is giving lift to oilseeds prices worldwide. This week, market is likely to stay firm on concerns over the U.S. soybean crop. At the Indore spot market in top producer MP, soybean gained 21 Rs to 4519Re per 100 kgs. Market has opened at 3970 & made a low of 3970 versus the day high of 4033. The total volume for the day was at 115410 lots and the open interest was at 77580.Support for soyabean is at 3969 below that could see a test of 3938. Resistance is now seen at 4032 above that could see a resistance of 4064.

Trading Ideas:

Soybean trading range for the day is 3938-4064.

Soybean ended higher tracking a rally in U.S. market and on thin supply of soybeans in local spot markets

Cash soybean basis was steady in Gulf of Mexico but export and domestic crush demand remain supportive

NCDEX accredited warehouses soyabean stocks dropped by 1 tonnes to 3054 tonnes.

At the Indore spot market in top producer MP, soybean gained 21 Rs to 4519Re 100 kgs.