Soyabean settled up 1.03% at 3872 on lack of oilseed availability in the domestic market and on robust demand from US soybean. Arrivals are low in the spot market which will continue to support prices. Futures are trading at a discount compared to spot which has triggered traders to buy at lower level. US weekly soybean export inspection data came at 45.4 million bushels to overseas buyers in the week that ended on Jan 30, 15% higher than last year the US Department of Agriculture (USDA) said in a report. Confusion seen over the implementation of Food Safety and Standards Act. Though Chief Minister has assured extension in implementation to the trade unions by now no official confirmation has been received. The export of oilmeals during Apr-Dec surged by 7% to 3.16 million tons compared to 2.95 million tons during the same period of last year, data from the Solvent Extractors Association showed. The Soybean Processors Association (SOPA) slashed its second estimates for soybean production to 12.2 tons in Kharif 2013 compared to 12.9 tons previous estimates and 12.1 tons previous year. Madhya Pradesh, India's biggest soybean growing state production estimates downward to 5.61 million tons compared to previous estimates of 6.26 million tons, data release from SOPA showed. At the Indore spot market in top producer MP, soybean gained 32 rupee to 4030 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.76% to settled at 115610 while prices up 39.5 rupee, now Soyabean is getting support at 3842 and below same could see a test of 3813 level, And resistance is now likely to be seen at 3905, a move above could see prices testing 3939.

Trading Ideas:

Soyabean trading range for the day is 3816-3942.

Soyabean gained on lack of oilseed availability in the domestic market and on robust demand from US soybean.

Arrivals are low in the spot market which will continue to support prices.

Madhya Pradesh, production estimates downward to 5.61 million tons compared to previous estimates of 6.26 million tons

At the Indore spot market in top producer MP, soybean gained 32 rupee to 4030 rupee per 100 kgs.