Soyabean settled up 0.54% at 3732 on short covering tracking firmness in spot demand after prices dropped due to rains and sowing progress. Also, sowing has picked up well in most growing areas and traders feel this is putting some pressure on prices. According to traders, 80% sowing is complete and the remaining will get over by the end of this week. But fear of supply shortage is may act as a big support to prices in the coming days. Arrivals of soyabean in Madhya Pradesh state dropped by -10000 bags of 100kg each to 20000 bags of 100kg each. Arrivals of soyabean in Maharashtra state dropped by 3000 bags of 100kg each to 12000 bags of 100kg each. Good progress of monsoon in soybean growing belts further added up to the weak tone. As per the latest date released by the Ministry of Agriculture, the oilseed sowing is around 38.07 lakh hectares compared to 149.82 lakh hectares. As per IMD, the South-West Monsoon continue to rain actively in Soybean growing areas. The Monsoon deficit too has reduced significantly from 27 to 25% as on 23rd July and the worst effected Central India figures have come down to around 20 %. Also, the quality of seeds remain a concern this year as excess rains last year had damaged the crop impacting the quality and triggering a shortage of certified seed. At the Indore spot market in top producer MP, soybean gained 2 rupee to 4218 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 0.48% to settled at 71170, now Soyabean is getting support at 3687 and below same could see a test of 3641 level, And resistance is now likely to be seen at 3761, a move above could see prices testing 3789.

Trading Ideas:

Soyabean trading range for the day is 3641-3789.

Soyabean ended with small gains on short covering tracking firmness in spot demand after prices dropped due to rains and sowing progress.

Soyabean output last year stood at 11.94 million tonnes over previous year's 14.66 million tonnes.

NCDEX accredited warehouses soyabean stocks dropped by 1372 tonnes to 21739 tonnes.

At the Indore spot market in top producer MP, soybean gained 2 rupee to 4218 rupee per 100 kgs.