Soyabean settled down -1.73% at 3758 driven by lack of demand in the spot markets. However, concerns over the production of summer-sown crops due to forecast of lower rainfall, capped some losses. Next two weeks rainfall pattern will be crucial for sowing progress of soybean crops. As per per the latest date released by the Ministry of Agriculture, the oilseed sowing is around 14.49 lakh hectares down from a bumper sowing of 110.27 lakh hectares last year during the same period. Arrivals of soyabean in Rajasthan state dropped by -1000 bags of 100kg each to 12000 bags of 100kg each. Also, uncertainties related to weather and sowing is also making the buyers cautious. According to Ministry of Agriculture soybean planting as on 26th June is reported at 101,000 ha compared to 177,000 ha last year. There are concerns over below normal monsoon season, emergence of El-Nino and shortage of seeds for kharif 2014 sowing. The Ministry of Agriculture in its 3nd Advance Estimates, projected 2013-14 soybean output at 11.9 mn tn as against 14.67 mn tn in 2012-13. Soy meal exports in May ’14 have declined to 8,226 tn, down 91.47% y-o-y from 96,492 tn on poor demand and lower availability for  crushing due to higher Indian quotes for foreign buyers. At the Indore spot market in top producer MP, soybean dropped  -40 rupee to 4086 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 5.42% to settled at 75890 while prices down -66 rupee, now Soyabean is getting support at 3728 and below same could see a test of 3695 level, And resistance is now likely to be seen at 3814, a move above could see prices testing 3867.

Trading Ideas:

Soyabean trading range for the day is 3694-3866.

Soyabean prices ended with losses driven by lack of demand in the spot markets.

However, concerns over the production of summer-sown crops due to forecast of lower rainfall, capped some losses.

NCDEX accredited warehouses soyabean stocks gained by 70 tonnes to 39807 tonnes.

At the Indore spot market in top producer MP, soybean dropped  -40 rupee to 4086 rupee per 100 kgs.