Soyabean settled up 1.34% at 3171 on expectations of higher demand due to upcoming festivals. However, weak export demand for soymeal, capped some gains in soyabean prices to some extent. India's soymeal exports in August fell to 2,778 tonnes compared with 183,965 tonnes a year ago. Soybean exports from India dropped 98% to 2,778 tons in the month of August from a year ago on weak demand from Europe, Iran, and Vietnam, data released by the Solvent Extractors Association of India (SEA) showed. Demand for Indian soymeal is low as countries such as United States, the world's biggest producer of the bean, Brazil and Argentina are offering meal at cheaper prices. Arrivals of soyabean in Madhya Pradesh state dropped by 15000 bags of 100kg each to 10000 bags of 100kg each. Arrivals of soyabean in Maharashtra state dropped by 3000 bags of 100kg each to 5000 bags of 100kg each. Arrivals of soyabean in Rajasthan state dropped by 1000 bags of 100kg each to 6000 bags of 100kg each. US soymeal prices traded at $491.85 per ton as of Sep 10. Late monsoon withdrawal boosted hopes of better rains for sanding crop and increasing the prospects of higher yield. The southwest monsoon withdrawal is delayed from over a week favouring yield of the crop. Monsoon generally begins withdrawing from Sep 1. Technically market is under short covering as market has witnessed drop in open interest by -5.72% to settled at 70830 while prices up 42 rupee, now Soyabean is getting support at 3118 and below same could see a test of 3064 level, And resistance is now likely to be seen at 3224, a move above could see prices testing 3276.

Trading Ideas:

Soyabean trading range for the day is 3064-3276.

Soyabean prices ended with gains on expectations of higher demand due to upcoming festivals.

However, weak export demand for soymeal, capped some gains in soyabean prices to some extent.

India's soymeal exports in August fell to 2,778 tonnes compared with 183,965 tonnes a year ago.

At the Indore spot market in top producer MP, soybean remains unchanged at 0 rupee to 3531 rupee per 100 kgs.