Soyabean on NCDEX settled down -0.5% at 3367 on expectation of higher yield following reports of favourable weather condition for standing crops in India and United States and on weak demand for soymeal in domestic market. Currently crops are in excellent conditions and soybean output expected to rise to 10-11 million tons this year compared to 7.5 million tons in last year. Further, United States Department of Agriculture (USDA) rated 72% of the US soybean crop in good to excellent condition, a historically high figure that was unchanged from the previous week. So far the standing soybean crop is in good conditions but it will be too early to project the output at this stage, said an official of Indore based Soybean Processors Association of India (SOPA). Indian farmers have planted soybean over 11.18 million hectare marginally up from 11 million hectare a year due to good monsoon rains. Madhya Pradesh is the largest soybean producing state and sowing stood at 5.36 million hectare versus 5.8 million hectare, agriculture ministry data showed. India produced 8.59 million ton soybean during 2015-16 down from 10.34 million ton, as per fourth advance estimates of agriculture ministry. The United States department of agriculture (USDA) hiked 2015-16 United States soybean production forecast for August and also raised its forecast for ending stockpiles, the department said in its World Agriculture Supply and Demand Estimates report. Technically market is under long liquidation as market has witnessed drop in open interest by -0.56% to settled at 57010 while prices down -17 rupee, now Soyabean is getting support at 3352 and below same could see a test of 3337 level, And resistance is now likely to be seen at 3388, a move above could see prices testing 3409.

Trading Ideas:

Soyabean trading range for the day is 3337-3409.

Soyabean prices dropped on expectation of higher yield following reports of favourable weather condition for standing crops.

Currently crops are in excellent conditions and soybean output expected to rise to 10-11 million tons this year.

Indian farmers have planted soybean over 11.18 million hectare marginally up from 11 million hectare a year.

At the Indore spot market in top producer MP, soybean dropped -69 rupee to 3598 rupee per 100 kgs.