Soyabean yesterday settled up 3.56% at 3170 supported by good demand in spot market against limited arrivals from producing belts. The trading sentiment improved further on fears that heavy rains in some pockets could damage the main summer oilseed crop. Meanwhile, reports of fall in production in the US, Argentina and Brazil raised expectation of strong export demand, and encouraged traders to enlarge their positions. Widespread rains in soybean producing belts in India have been a cause of concern as there are fears that water logging may damage crops. As per the latest USDA report, the 2013-14 US soybean crop output is expected to touch 3.255 billion bushels against 3.420 billion bushels in July. Meanwhile, India's June export of oil meals this year stands at 348,946 tons in comparison to 311,089 tons in June, 2012, a gain of 12%. But the April-June quarter exports of oilmeals is reported at 850,951 tons compared to 1,074,034 tons q/q which is down by 21%. Arrivals of soyabean in Madhya Pradesh state gained by 10000 bags of 100kg each to 60000 bags of 100kg each. Arrivals of soyabean in Maharashtra state dropped by -5000 bags of 100kg each to 20000 bags of 100kg each. Arrivals of soyabean in Rajasthan state dropped by -18000 bags of 100kg each to 7000 bags of 100kg each. At the Indore spot market in top producer MP, soybean gained 19 rupee to 3567 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 2.57% to settled at 82930 while prices up 109 rupee, now Soyabean is getting support at 3110 and below same could see a test of 3050 level, And resistance is now likely to be seen at 3207, a move above could see prices testing 3244.

Trading Ideas:

Soyabean trading range for the day is 3052-3246.

Soyabean ended with gains supported by good demand in spot market against limited arrivals from producing belts.

The trading sentiment improved further on fears that heavy rains in some pockets could damage the main summer oilseed crop.

Arrivals of soyabean in Madhya Pradesh state gained by 10000 bags of 100kg each to 60000 bags of 100kg each.

At the Indore spot market in top producer MP, soybean gained 19 rupee to 3567 rupee per 100 kgs.