Soyabean on NCDEX settled down by -0.19% at 3231 due to higher production estimates and reports of lowering import duty on edible oil. There are reports of deteriorating growing conditions in the main soybean areas. At least 75 percent of the area has been impacted by excessive rainfall. The according to a latest survey report released SOPA, the overall condition of soybean crop in the country is "satisfactory" with over 30% of crop in good-to-very-good condition, and nearly 60% in normal condition. In MP, the largest grower of soybean, acreage fell 9.2% from a year ago level. According to USDA latest report, growing conditions in the main soybean areas of India are deteriorating. Madhya Pradesh, which accounts for a third of India’s soybean production, had received 122 percent of their average seasonal rainfall by the end of August. China’s 2016/17 soybean production is forecast at 12.5 million metric tons, up 0.3 million or 2.5 percent from last month and up 7.8 percent from last year. Area is estimated at 7.1 million hectares, up 0.3 million or 4.4 percent from last month and up 10 percent from last year, marking the first area increase since 2009. Brazil soybean production for 2016/17 is forecast at 101.0 million metric tons compared to 96.5 million last year. At the Indore spot market in top producer MP, soybean gained 19 rupee to 3426 rupee per 100 kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.97% to settled at 53460 while prices down -6 rupee, now Soyabean is getting support at 3201 and below same could see a test of 3171 level, And resistance is now likely to be seen at 3255, a move above could see prices testing 3279.

Trading Ideas:

Soyabean trading range for the day is 3171-3279.

Soyabean prices dropped due to higher production estimates and reports of lowering import duty on edible oil.

There are reports of deteriorating growing conditions in the main soybean areas.

China’s 2016/17 soybean production is forecast at 12.5 million metric tons, up 0.3 million or 2.5 percent from last month.

At the Indore spot market in top producer MP, soybean gained 19 rupee to 3426 rupee per 100 kgs.