Soyabean on NCDEX settled down -0.17% at 2941 on higher arrivals in local mandis and on subdued demand for soymeal from poultry sectors. Arrivals in the local mandis were estimated at 130,000-133,000 bags today as compared to 50,000-65,000 bags on the previous day. Demand from crushers is just to meet the immediate requirement due to negative crush margins. Demand for soymeal is also weak from domestic buyers due to lean demand for eggs and broilers during summers. Soymeal demand from poultry feed manufacturer is reducing at higher level as most of the poultry farmers are facing decline in profit margin if they procure soymeal at higher level. The US Department of Agriculture's Beijing arm has maintained its forecast for soybean imports by China at record 89 mln tn in 2017-18 (May-Apr) due to rising demand in domestic markets. China is the world's largest buyer of soybean and accounts of over 60% of world's imports. Imports would be mainly carried out from the US, Brazil and Argentina, the world's leading growers of soybean. The Asian country is estimated to import 86 mln tn of soybean last year. The forecast for China's total oilseed imports was also raised to 93.84 mln tn for 2017-18 from 90.37 mln tn. China is also the largest importer of oilseed in the world. Agroconsult has raised Brazil’s 2016/17 soybean production by around 3 million tonnes to 111 million tonnes, highest by any agency. Technically market is under long liquidation as market has witnessed drop in open interest by -0.13% to settled at 86450 while prices down -5 rupees, now Soyabean is getting support at 2934 and below same could see a test of 2926 level, And resistance is now likely to be seen at 2951, a move above could see prices testing 2960.

Trading Ideas:

# Soyabean trading range for the day is 2926-2960.

# Soyabean prices dropped on higher arrivals in local mandis and on subdued demand for soymeal from poultry sectors.

# Arrivals in the local mandis were estimated at 130,000-133,000 bags as compared to 50,000-65,000 bags on the previous day.

# NCDEX accredited warehouses soyabean stocks dropped by 622 tonnes to 192838 tonnes.

# At the Indore spot market in top producer MP, soybean dropped -7 Rupees to 3014 Rupees per 100 kgs.