Soyabean yesterday we have seen that market has moved 0.73% in spot markets as buying improved due to gains in overseas markets. Overseas markets were up on improved export demand in US and weather concerns in Argentina. But domestic traders had doubts on whether the prices in India would be able to sustain these gains. At present, soy product demand is below expectations and prices will sustain gains only on fresh demand. Buyers were not really active as the markets await the US department of Agriculture report but prices got support from low supplies. Millers have reported the strong soyabean demand in local mandies due to positive crushing margin from soyabean. Most of the millers have reported the strong crushing margins of around Rs 70-80 per quintal from domestic soyabean. Moreover, reduction in fresh supplies in local mandies also witnessed some buying in soyabean market at lower levels. Arrivals of soyabean in Maharashtra state gained by 5000 bags of 100kg each to 75000 bags of 100kg each. Arrivals of soyabean in Rajasthan state gained by 10000 bags of 100kg each to 50000 bags of 100kg each. At the Indore spot market in top producer MP, soybean gained 34 Rs to 3296Re per 100 kgs. Market has opened at 3311.5 & made a low of 3298 versus the day high of 3349.5. The total volume for the day was at 137400 lots and the open interest was at 187600. Support for soyabean is at 3299 below that could see a test of 3273. Resistance is now seen at 3350 above that could see a resistance of 3376.

Trading Ideas:

Soybean trading range for the day is 3273-3375.

Soybean ended with gains in spot markets as buying improved due to gains in overseas markets.

Overseas markets were up on improved export demand in US and weather concerns in Argentina.

NCDEX accredited warehouses soyabean stocks dropped by 2526 tonnes to 52605 tonnes.

At the Indore spot market in top producer MP, soybean gained 34 Rs to 3296Re 100 kgs.