Soyabean settled flat on subdued demand in the spot market against adequate stocks position led to decline in prices. The prices also declined due to weak export demand for soymeal. Meanwhile, India's soymeal exports are expected to drop more than a quarter to a total 6 million tonnes in the year to September 2014 as buyers opt for cheaper supplies from South America.

Arrivals of soyabean in Madhya Pradesh state gained by 35000 bags of 100kg each to 100000 bags of 100kg each. Arrivals of soyabean in Rajasthan state gained by 5000 bags of 100kg each to 25000 bags of 100kg each. Many farmers are holding back soybean supplies. They are not willing to sell at current levels. Demand is moderate from oil mills. Arrivals are low in producing states like Madhya Pradesh, Maharashtra and many mandis are closed in Rajasthan due to labour strike.

Global soybean consumption in 2012-13 is projected at a record 270.47 mn tn by the USDA , however this is only a 4.86 percent year-on-year rise and represents a relatively modest rate of growth in world use in comparison with earlier periods. This is mostly attributed to a less pronounced expansion of domestic demand in China-in part due to an outbreak of avian influenza-and a contraction in US consumption.

Technically market is under fresh buying as market has witnessed gain in open interest by 1.7% to settled at 128030 while prices up 1.5 rupee, now Soyabean is getting support at 3731 and below same could see a test of 3707 level, And resistance is now likely to be seen at 3780, a move above could see prices testing 3805.

Trading Ideas:

Soyabean trading range for the day is 3708-3806.

Soyabean settled flat on subdued demand in the spot market against adequate stocks position led to decline in prices

The prices also seen pressure due to weak export demand for soymeal.

Arrivals of soyabean in Madhya Pradesh state gained by 35000 bags of 100kg each to 100000 bags of 100kg each.

At the Indore spot market in top producer MP, soybean remains unchanged at 0 rupee to 3885 rupee per 100 kgs.