Soyabean settled up 0.37% at 3751 tracking firmness in spot demand on fear of low supplies ahead. Currently, arrivals are low as farmers are busy in sowing and once it finishes, stocks are likely to be low. Also, some felt previously that dry weather may divert some of farmers stock to mandis. According to sources, end stocks after sowing are likely to be not more than 10-15 lakh tonne. Prices also got boost from improvement in domestic soymeal demand from livestock and poultry industry due to rains.

Demand for non-vegetarian products produced by livestock and poultry industry increases in rainy season which is major consumer of soymeal in India. Arrivals of soyabean in Madhya Pradesh state gained by 7000 bags of 100kg each to 17000 bags of 100kg each. Arrivals of soyabean in Maharashtra state gained by 5000 bags of 100kg each to 15000 bags of 100kg each. Arrivals of soyabean in Rajasthan state gained by 3000 bags of 100kg each to 12000 bags of 100kg each.

According, to sources sowing has begun in many areas in. According to sources, rains have covered most of the soybean growing areas and sowing has gained pace. Export sales of United States rose to 561,000 tons as compared to 37,700 tons a year ago data by Unites States Department of Agriculture showed. At the Indore spot market in top producer MP, soybean gained 12 rupee to 4100 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.33% to settled at 77460 while prices up 14 rupee, now Soyabean is getting support at 3714 and below same could see a test of 3678 level, And resistance is now likely to be seen at 3778, a move above could see prices testing 3806.

Trading Ideas:

Soyabean trading range for the day is 3678-3806.

Soybean prices ended with gains tracking firmness in spot demand on fear of low supplies ahead.

According to sources, end stocks after sowing are likely to be not more than 10-15 lakh tonne.

NCDEX accredited warehouses soyabean stocks dropped by 2891 tonnes to 37938 tonnes.

At the Indore spot market in top producer MP, soybean gained 12 rupee to 4100 rupee per 100 kgs.