Soyabean settled down -0.17% at 4003.5 on profit booking after prices gained on concerns over supplies from top exporter Brazil. Unfavourable weather condition in Brazil may hurt the prospects of higher yield and on lower supplies in the domestic market. Brazil draught condition has raised lower supply concerns which will support prices. Domestically weak arrivals will aid upside momentum. Domestically soybean prices may be supported on lower supplies of the oilseed in the local mandis amid improved demand for the bean from the oil refineries and plants. Total soybean output may fall by 5 million tons in South American region due to heat and dryness in Argentina and Brazil. Arrivals are not picking up and at the same time demand is good. Due to extended rainfall in the key oilseed growing areas across Madhya Pradesh had hampered soy crop quality and quantity. Soybean production is to be lowered to 12.23 million ton from 12.98 million ton earlier, the Soybean Producers Association (SOPA) said. India soybean output estimates were slashed to 12.45 million ton in 2013-14 against 14.67 million ton in 2012-13, the Ministry of Agriculture in its second advance estimates. Arrivals of soyabean in Maharashtra state dropped by 5000 bags of 100kg each to 75000 bags of 100kg each. At the Indore spot market in top producer MP, soybean dropped -1 rupee to 4087 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -0.54% to settled at 99430 while prices down -7 rupee, now Soyabean is getting support at 3991 and below same could see a test of 3978 level, And resistance is now likely to be seen at 4029, a move above could see prices testing 4054.

Trading Ideas:

Soyabean trading range for the day is 3980-4056.

Soyabean ended with gains tracking firmness in spot demand and overseas prices on concerns over supplies from top exporter Brazil

Unfavourable weather condition in Brazil may hurt the prospects of higher yield and on lower supplies in the domestic market.

NCDEX accredited warehouses soyabean stocks gained by 1871 tonnes to 3718 tonnes.

At the Indore spot market in top producer MP, soybean dropped -1 rupee to 4087 rupee per 100 kgs.