Soyabean yesterday settled down -3.04% at 3367 tracking weakness in spot demand and overseas prices ahead of US Department of Agriculture (USDA) soybean crop forecast report which is scheduled to be released on Thursday. The USDA is likely to cut to its soybean production estimates in its September report. Strong demand of soyameal at lower levels will propel strong offtake of soyabean by millers. As per the latest release from Solvent Extractors' Association of India, the export of soyameal during August 2013 is reported at 1.83 lakh tonnes compared to 0.10 lakh tonnes in August 2012 i. e. up by 1730%.Similarly; bullish cues from international market will also add some gains in domestic soyabean market. USDA latest weekly crop report stated that soybean conditions took a similar slide in the last week, losing 2% in the crop rated good to excellent. For soybeans in Iowa, the rating fell by 6% (from 39% to just 33%) in the last week . This will reduce the overall yield of the soyabean crop in the current year. Arrivals of soyabean in Madhya Pradesh state dropped by -30000 bags of 100kg each to 60000 bags of 100kg each. Arrivals of soyabean in Maharashtra state gained by 5000 bags of 100kg each to 30000 bags of 100kg each. Arrivals of soyabean in Rajasthan state dropped by -5000 bags of 100kg each to 15000 bags of 100kg each. Moreover, new soybean crop arrivals noticed in some areas of Maharashtra. At the Indore spot market in top producer MP, soybean dropped -55 rupee to 3522 rupee per 100 kgs. Now Soyabean is getting support at 3331 and below same could see a test of 3295 level, And resistance is now likely to be seen at 3421, a move above could see prices testing 3475.

Trading Ideas:

Soyabean trading range for the day is 3293-3473.

Soyabean ended with losses tracking weakness in spot demand and overseas prices ahead of USDA soybean crop forecast report

The USDA is likely to cut to its soybean production estimates in its September report.

Strong demand of soyameal at lower levels will propel strong offtake of soyabean by millers.

At the Indore spot market in top producer MP, soybean dropped -55 rupee to 3522 rupee per 100 kgs.