Soyabean yesterday settled up 0.29% at 3145 tracking firmness in spot demand amid short covering but higher area under cultivation limited the upside. New crop soybean contracts on overnight CBOT were down on improved weather for the standing crop. Good crop in US indicates increased global supplies in the coming days. In domestic markets, buyers were cautious due to confusion about future direction of the markets. Arrivals of soyabean in Madhya Pradesh state gained by 5000 bags of 100kg each to 45000 bags of 100kg each. Arrivals of soyabean in Rajasthan state gained by 5000 bags of 100kg each to 20000 bags of 100kg each. In Madhya Pradesh, over 90 per cent sowing of the oilseed has been completed. Given increase in support price to soyabean by the Government, sowing is expected to increase by 7-10 per cent, according to Soyabean Processors Association of India. Bullish trend in soyabean in near future appears unlikely, given adequate carryover stock and enthusiastic sowing report in the season so far. Rains in various parts of Madhya Pradesh in the past few days have also affected buying sentiment in soyabean, leading to sluggish trend in its prices. As per the latest release from the USDA , the total global production of soyabean in 2013-14 is projected higher by 0.75 million tonnes from the last month to reported at 285.89 million tonnes. At the Indore spot market in top producer MP, soybean dropped -25 rupee to 3741 rupee per 100 kgs. Now Soyabean is getting support at 3124 and below same could see a test of 3103 level, And resistance is now likely to be seen at 3163, a move above could see prices testing 3181.

Trading Ideas:

Soyabean trading range for the day is 3105-3183.

Soyabean gains tracking firmness in spot demand amid short covering but higher area under cultivation limited the upside.

New crop soybean contracts on overnight CBOT were down on improved weather for the standing crop.

NCDEX accredited warehouses soyabean stocks gained by 30 tonnes to 17350 tonnes.