Soyabean settled up 0.54% at 3908.5 tracking firmness in spot demand amid due to slack local supplies. Markets have support from overseas cues and lower than expected arrivals but prices would sustain only if soy product demand shows improvement. Arrivals in Madhya Pradesh were up after 2-3 days of dull trade due to bank strike. Farmers delivered around 90,000 bags of 100 kg each to Madhya Pradesh mandis. SOPA has estimated production to be lower and has revised its output expectations to 122.34 lk tn from 129.83 lk tn earlier. The Ministry of Agriculture in its 1st Advance Estimates, projected 2013-14 soybean output at 15.68 mn tn as against 14.67 mn tn in 2012-13. According to SEA, Soy meal exports declined 43.97% y-o-y to 364,443 tonnes in Jan ’14 as against 650,434 tonnes in Jan ’13 due to lower supplies and lower crushing. The Ministry of Agriculture in its 1st Advance Estimates, projected 2013-14 soybean output at 15.68 mn tn as against 14.67 mn tn in 2012-13. According to SEA, Soy meal exports declined 43.97% y-o-y to 364,443 tonnes in Jan ’14 as against 650,434 tonnes in Jan ’13 due to lower supplies and lower crushing. US 2013-14 ending stockpiles is expected to be slashed to 143 million bushels compared to 150 million bushels earlier while Argentina harvesting estimates may be trimmed to 54 million tons of soybean in 2013-14 compared 54.3 million tons earlier, various surveys showed. At the Indore spot market in top producer MP, soybean gained  12 rupee to 4019 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -1.97% to settled at 110680 while prices up 21 rupee, now Soyabean is getting support at 3883 and below same could see a test of 3857 level, And resistance is now likely to be seen at 3927, a move above could see prices testing 3945.

Trading Ideas:

Soyabean trading range for the day is 3856-3944.

Soyabean ended with gains tracking firmness in spot demand amid due to slack local supplies.

Markets have support from overseas cues and lower than expected arrivals but prices would sustain only if soy product demand shows improvement

NCDEX accredited warehouses soyabean stocks gained by 30 tonnes to 510 tonnes.

At the Indore spot market in top producer MP, soybean gained  12 rupee to 4019 rupee per 100 kgs.