Soyabean settled up 0.7% at 3954.5 due to firm cues from the international market and on slack soybean supplies in the local market. 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 2nd Advance Estimates, projected 2013-14 soybean output at 12.45 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 US Department of Agriculture reported that US soybeans exporters shipped 72% of their production to China in the week ended February 6th. The USDA added that old-crop soybeans shipments reached 173 644 tons in the week ended February 6, marking a 25% increase for the four-week average compared to the same period a year ago. A new period of hot and drier weather may begin later in the weekend and continue into next week before more showers arrive late in the week. Arrivals of soyabean in Madhya Pradesh state dropped by -20000 bags of 100kg each to 70000 bags of 100kg each. Arrivals of soyabean in Maharashtra state dropped by -10000 bags of 100kg each to 90000 bags of 100kg each. Arrivals of soyabean in Rajasthan state dropped by -15000 bags of 100kg each to 20000 bags of 100kg each. At the Indore spot market in top producer MP, soybean gained 3 rupee to 4020 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 3.44% to settled at 111430 while prices up 27.5 rupee, now Soyabean is getting support at 3925 and below same could see a test of 3896 level, And resistance is now likely to be seen at 3974, a move above could see prices testing 3994.

Trading Ideas:

Soyabean trading range for the day is 3896-3994.

Soyabean ended with gains due to firm cues from the international market and on slack soybean supplies in the local market.

SOPA has estimated production to be lower and has revised its output expectations to 122.34 lk tn from 129.83 lk tn earlier.

NCDEX accredited warehouses soyabean stocks gained by 59 tonnes to 729 tonnes.

At the Indore spot market in top producer MP, soybean gained  3 rupee to 4020 rupee per 100 kgs.