Soyabean on NCDEX settled up by 0.16% at 3091 on short covering after prices dropped on sluggish demand in export market and increasing supply in global market. Prices of the bean were under pressure on expectation of surplus supplies amid ongoing harvesting activity in Brazil and drier weather conditions in Argentina favoring the crops. As per Agrural, harvesting activity in Mato Grosso, Brazil's largest soybean producer is 7.5% complete compared to 3.6% estimated in the same period a year ago. According to FCStone estimated Brazil's soybean crop at 102.8 million tons this season with expected average soy yields at 3.06 ton per hectare. According to United States Department Agriculture (USDA) weekly export sales report, net sales around 539,400 tons were reported for 2016-17 which were down 45% as compared to the previous week and 10% down from prior 4-week average. Meanwhile, as per the Buenos Aires Grain Exchange estimated the Argentina's soybean crop would be 53.5 million tons. 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 -11 Rupees to 3020 Rupees per 100 kgs.Technically now Soyabean is getting support at 3069 and below same could see a test of 3046 level, And resistance is now likely to be seen at 3106, a move above could see prices testing 3120.

Trading Ideas:

Soyabean trading range for the day is 3046-3120.

Soyabean recovered on short covering after prices dropped on sluggish demand in export market and increasing supply in global market.

USDA trimmed 2016-17 United States soybean production forecast for January also cut forecast for ending stockpiles compared to previous month.

NCDEX accredited warehouses soyabean stocks gained by 3466 tonnes to 181291 tonnes.

At the Indore spot market in top producer MP, soybean dropped -11 Rupees to 3020 Rupees per 100 kgs.