Soyabean yesterday settled up 0.61% at 3439 due to rising demand in the spot markets and gains in overseas prices. Sentiments improved further as a result of the limited stocks on account of restricted arrivals from the major growing belts. The prices found further support from a firming trend in the global markets on speculation that the US Department of Agriculture will cut its domestic crop estimate after dry weather in the past month curbed yields. The soyabean crop has been damaged in some parts of Madhya Pradesh and Maharashtra due to excess rainfall. The area under soyabean this year is 122 lh against 107 lh last year. Soyabean production could be between 115 lakh tonnes (lt) and 120 lt against 107 lt. Though continuous rain from June to August-end had threatened the soyabean crop, sunshine during the last two weeks has raised hopes of a better crop. But gains are limited as market players see higher supplies in the coming days as harvesting gains pace. Also, increasing new crop supplies are putting pressure on prices. Arrivals of soyabean in Madhya Pradesh state dropped by -5000 bags of 100kg each to 50000 bags of 100kg each. Arrivals of soyabean in Maharashtra state dropped by -5000 bags of 100kg each to 30000 bags of 100kg each. At the Indore spot market in top producer MP, soybean gained 35 rupee to 3560 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -5.07% to settled at 93040 while prices up 21 rupee, now Soyabean is getting support at 3410 and below same could see a test of 3381 level, And resistance is now likely to be seen at 3475, a move above could see prices testing 3511.

Trading Ideas:

Soyabean trading range for the day is 3385-3515.

Soyabean ended with gains due to rising demand in the spot markets and gains in overseas prices.

Sentiments improved further as a result of the limited stocks on account of restricted arrivals from the major growing belts.

The soyabean crop has been damaged in some parts of Madhya Pradesh and Maharashtra due to excess rainfall.

At the Indore spot market in top producer MP, soybean gained 35 rupee to 3560 rupee per 100 kgs.