Soyabean on NCDEX settled down by -0.47% at 3159 tracking weakness in spot demand despite of overseas gains on concerns that floods could crimp output in Argentina. Downside also seen limited on increasing soymeal export prospects and on supply worries from the United States. Arrivals were marginally higher to 415,000 bags. With sharp rise in domestic soy meal prices fresh exports are not seen forthcoming. Further from the fundamental front earlier soybean production estimation by various government and private agencies were around 10 million tons however looking at the arrivals pace and heavy winter in North and central parts of India indicates the arrivals of new supply may be tight. As per report all India soybean arrivals were around 130,000 bags mostly unchanged from the previous day however believe to match up with the production estimation the arrivals should increase in the near term. The United States department of agriculture (USDA) trimmed 2016-17 United States soybean production forecast for January also cut forecast for ending stockpiles compared to previous month, the department said in its World Agriculture Supply and Demand Estimates report. The USDA expects soybean output in US, the world's biggest bean grower, at 117.2 million tons in January compared to 118.7 million tons in the previous month while higher than 106.9 million tons a year ago. At the Indore spot market in top producer MP, soybean dropped -4 rupee to 3142 rupee per 100 kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 1.12% to settled at 155610 while prices down -15 rupee, now Soyabean is getting support at 3142 and below same could see a test of 3124 level, And resistance is now likely to be seen at 3191, a move above could see prices testing 3222.

Trading Ideas:

Soyabean trading range for the day is 3124-3222.

Soyabean dropped tracking weakness in spot demand despite of overseas gains on concerns that floods could crimp output in Argentina.

Downside also seen limited on increasing soymeal export prospects and on supply worries from the United States.

NCDEX accredited warehouses soyabean stocks gained by 2999 tonnes to 163184 tonnes.

At the Indore spot market in top producer MP, soybean dropped -4 rupee to 3142 rupee per 100 kgs.