Soyabean yesterday we have seen that market has moved 0.66% due to tight supplies on production cut in Argentina and Brazil, while prices are likely to drop in 2012-13 on higher production. As per latest release from Ministry of Commerce, China's May soybean imports are likely to reach 7.23 million metric tonnes. According to reports, due to bad weather in Argentina and Brazil, production of soybean was cut 39.9 million tons and 66 million tons respectively. Also the china demand influenced the price of the commodity in the global market. According to USDA WASDE report, global soybean production is projected at 271.4 million tons, up 15%. While, Argentina and Brazil soybean crop is projected at 55 million tons and 78 million tons respectively. However for medium term soybean prices are expected to trade firm due to lower stocks in the domestic markets coupled with weak Indian rupee against dollar that is making imports of vegetable oil costlier and gives more return on soy meal exports. At the Indore spot market in top producer MP, soybean dropped -2 Rs to 3383Re per 100 kgs. Market has opened at 3268.5 & made a low of 3245 versus the day high of 3291. The total volume for the day was at 71270 lots and the open interest was at 75960. Support for soyabean is at 3256 below that could see a test of 3227. Resistance is now seen at
3302 above that could see a resistance of 3319.

Trading Ideas:

Soybean trading range for the day is 3227-3319.

Soyabean gained tracking gains spot demand amid due to tight supplies on production cut in Argentina and Brazil.

Due to bad weather in Argentina and Brazil, production of soybean was cut 39.9 mln tns and 66 mln tns respectively

NCDEX accredited warehouses soyabean stocks dropped by 1736 tonnes to 44957 tonnes.

At the Indore spot market in top producer MP, soybean dropped -2 Rs to 3383Re 100 kgs.