Soyabean on NCDEX settled up by 1.46% at 3119 on bargain buying at lower level and on improvement in demand from oil millers. However, the climate looks favourable for the harvesting activity to continue at its normal pace. According to trading sources, arrivals of soybean in Madhya Pradesh, were pegged to be at 900,000 bags, compared to 500,000 bags previous day. Moreover, forecast of dry weather in Rajasthan, MP and Maharashtra may hasten the harvesting of soybean. In Rajasthan, area under soybean cultivation has been reduced by 10% from the figure reported by the government because substantial area was seen converted to black gram, moong, maize etc. as compared to last year. Due to continuous rains after sowing, farmers could not spray the weedicide in the field, which has adversely affected the production, SOPA said. About 96% of the US soybean crop is dropping leaves which is slightly up from 95% during the corresponding period last year and also up from 94% compared to the 5 year average. Harvesting is reported at 62% down compared to 73% during the corresponding period last year and from 63% from 5 year average. About 74% of the newly planted US soybean crop is under good to excellent conditions which is up from 64% during the same period last year, reported in the US crop progress report dated 17 Oct. 2016. At the Indore spot market in top producer MP, soybean gained 23 rupee to 2967 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 2.52% to settled at 113600, now Soyabean is getting support at 3079 and below same could see a test of 3038 level, And resistance is now likely to be seen at 3143, a move above could see prices testing 3166.

Trading Ideas:

Soyabean trading range for the day is 3038-3166.

Soyabean prices gained on bargain buying at lower level and on improvement in demand from oil millers.

However, the climate looks favourable for the harvesting activity to continue at its normal pace.

NCDEX accredited warehouses soyabean stocks gained by 801 tonnes to 1865 tonnes.

At the Indore spot market in top producer MP, soybean gained 23 rupee to 2967 rupee per 100 kgs.