Soyabean yesterday settled down -0.95% at 2930 on low domestic demand and tracking weakness in spot demand. Good crop prospects and weak overseas markets discouraged buyers from being active. As of now crop is in good condition despite continuing rains in the growing areas. But many traders and farmers feel if rains continue in the coming days it may harm crop. Sharp weakness is seen due to better crop production prospects in India as well as US. Both markets are right now in bearish phase as buyers stay away from the market. The fresh crop is likely to reach the market at lest 15-20 days before the usual schedule. Thus traders are in hurry to dispose of their old stocks. If weather further remains favorable in the crop growth stage, then country can expect a bumper production this year too, thus putting pressure on the market prices. This year the sown area is expected to increase in the states like Maharashtra, Rajasthan and Madhya Pradesh. US soybean production is expected to exceed the earlier expectations which seems a bearish factor for the market. Arrivals of soyabean in Madhya Pradesh state gained by 10000 bags of 100kg each to 55000 bags of 100kg each. At the Indore spot market in top producer MP, soybean gained 73 rupee to 3259 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 5.84% to settled at 61790 while prices down -28 rupee, now Soyabean is getting support at 2908 and below same could see a test of 2887 level, And resistance is now likely to be seen at 2963, a move above could see prices testing 2997.

Trading Ideas:

Soyabean trading range for the day is 2887-2997.

Soyabean ended with losses on low domestic demand and tracking weakness in spot demand.

Good crop prospects and weak overseas markets discouraged buyers from being active.

As of now crop is in good condition despite continuing rains in the growing areas.

At the Indore spot market in top producer MP, soybean gained 73 rupee to 3259 rupee per 100 kgs.