Soyabean yesterday settled down -1.33% at 3160 due to steady sowing progress of kharif crop in major producing states along with bearish cues from international market. Moreover, bearish international cues also added some pressure on the commodity. As per the latest release from the USDA the total global production of soyabean in 2013-14 is projected marginally down from the last month to reported at 285.30 million tonnes. This is mainly due to weak supplies from Brazil. The global soyabean consumption for 2013/14 is reduced to 239.17 million tonnes due to weak crushing demand. Arrivals of soyabean in Madhya Pradesh state gained by 25000 bags of 100kg each to 100000 bags of 100kg each. Favorable monsoon conditions may help in increasing sown area under kharif oilseeds including soybean in the country. At international level too, the condition is better in terms of immediate supply. As per the latest USDA report, USA 2012-13 soybean ending stocks are expected to remain at 125 Million bushels which is unchanged vs May report. 2013-14 end stocks are expected to increase to 265 million bushels. 2013-14 world soybean end stock are estimated at 737 LT vs 750 LT. In international markets some upside is seen due to delay in sowing process which has supported the market sentiments. At the Indore spot market in top producer MP, soybean gained 22 rupee to 3746 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 36.79% to settled at 20600 while prices down -42.5 rupee, now Soyabean is getting support at 3131 and below same could see a test of 3101 level, And resistance is now likely to be seen at 3205, a move above could see prices testing 3249.

Trading Ideas:

Soyabean trading range for the day is 3103-3251.

Soyabean dropped due to steady sowing progress of kharif crop in major producing states along with bearish cues from international market.

Indian farmers have cultivated soybeans on 4.29 million hectares compared with 0.63 million hectares a year ago.

NCDEX accredited warehouses soyabean stocks gained by 30 tonnes to 21730 tonnes.

At the Indore spot market in top producer MP, soybean gained 22 rupee to 3746 rupee per 100 kgs.