Soyabean settled up 1.55% at 3739 due to higher demand in spot market. However, the gains were capped by poor exports demand for soymeal and expectations of higher global supplies due to crop-friendly weather condition across the US Midwest. Uncertainty related to production in the current season due to delayed monsoon kept buyers away in last few session. The delayed monsoon will to some extent impact the production figures of soybean and if the rains are further delayed, a higher drop in production figures can be expected.

As 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 Madhya Pradesh state dropped by -5000 bags of 100kg each to 20000 bags of 100kg each. Arrivals of soyabean in Rajasthan state dropped by -2000 bags of 100kg each to 10000 bags of 100kg each. According to Ministry of Agriculture soybean planting as on now is reported at 101,000 ha compared to 177,000 ha last year. 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. Technically market is under fresh buying as market has witnessed gain in open interest by 2.53% to settled at 79840 while prices up 57 rupee, now Soyabean is getting support at 3679 and below same could see a test of 3618 level, And resistance is now likely to be seen at 3785, a move above could see prices testing 3830.

Trading Ideas:

Soyabean trading range for the day is 3618-3830.

Soyabean ended with gains due to higher demand in spot market.

However, gains were capped by poor exports demand for soymeal and expectations of higher global supplies due to crop-friendly weather condition.

Arrivals of soyabean in Madhya Pradesh state dropped by -5000 bags of 100kg each to 20000 bags of 100kg each.

At the Indore spot market in top producer MP, soybean gained 72 rupee to 4076 rupee per 100 kgs.