Soyabean settled up by 1.2% at 3196 tracking firmness in spot demand on supply worries in domestic market. However soyabean gains were seen limited due to approaching harvest season of India and the US. The new season arrivals in India shall commence with full swing in next few weeks. Soybean crop on area of 3.3 million hectare is facing either stress or in poor condition and require at least one rainfall for normal yield, said Indore based Soybean Processors of India (SOPA). India rainfall deficiency rose to 14% until Sep 6 as monsoon started to retreat from northwest India triggering fears of drought in some parts of the country, particularly Uttar Pradesh, Bihar, Maharashtra and Karnataka. Total rainfall across the country stood at 650.4 mm as against the normal of 755.8 mm. The 4th estimate released by the GOI indicated lower than the estimated production for Indian soybean. In the US soybean crop progress report, about 96% of the crop is blooming which is slightly lower than the 5 year average of 98% and last year average of 99%. About 87% of the crop is reportedly in pod formation stage which is slightly lower than 5 year average of 88%, and lower from 89% last year. 63% of the crop is in good to excellent condition as against 70% during the same period last year. At the Indore spot market in top producer MP, soybean gained 18 rupee to 3344 rupee per 100 kgs.Technically market is under short covering as market has witnessed drop in open interest by -5.81% to settled at 56770, now Soyabean is getting support at 3152 and below same could see a test of 3108 level, And resistance is now likely to be seen at 3229, a move above could see prices testing 3262.

Trading Ideas:

Soyabean trading range for the day is 3108-3262.

Soyabean prices ended with gains tracking firmness in spot demand on supply worries in domestic market.

However soyabean gains were seen limited due to approaching harvest season of India and the US.

Soybean crop on area of 3.3 million hectare is facing either stress or in poor condition and require at least one rainfall for normal yield.

At the Indore spot market in top producer MP, soybean gained 18 rupee to 3344 rupee per 100 kgs.