Soyabean yesterday settled down by -2.6% at 5477 as India's soybean production is estimated to be 10 million tonnes as compared to last year's 8.9 million tonnes. New season soybean has started arriving in the mandis and bulk buyers are cautious for aggressive buying before the arrival pressure builds up. Pressure is also seen following a U.S. government report that showed larger-than-expected soybean inventory. U.S. Department of Agriculture said that Sept. 1 soybean stocks stood at 256 million bushels, down 51% from a year earlier but above a range of expectations. Latur Agriculture Produce Market Committee (APMC), reported arrivals of 15,000 quintals with average prices ranging between Rs 5,500 per quintal and Rs 6,100 per quintal.
Soyabean crop has been totally damaged on about 8 lakh hectares (lh) due to excessive rains and the crop condition is poor in about 12.83 per cent of the planted area, according to Soyabean Processors Association of India (SOPA), the apex trade body. SOPA said crop condition is normal in 42.20 per cent of the sown area, good in 22.97 per cent, and very good in 15.46 per cent. At the Indore spot market in top producer MP, soybean gained 132 Rupees to 5558 Rupees per 100 kgs.
Technically market is under long liquidation as the market has witnessed a drop in open interest by -3.3% to settled at while prices down -146 rupees, now Soyabean is getting support at 5379 and below same could see a test of 5280 levels, and resistance is now likely to be seen at 5601, a move above could see prices testing 5724.
Trading Ideas:
# Soyabean trading range for the day is 5280-5724.
# Soyabean prices dropped as India's soybean production is estimated to be 10 million tonnes as compared to last year's 8.9 million tonnes.
# Pressure was also seen following a U.S. government report that showed larger-than-expected soybean inventory.
# New season soybean has started arriving in the mandis and bulk buyers are cautious for aggressive buying before the arrival pressure builds up.
# At the Indore spot market in top producer MP, soybean gained 132 Rupees to 5558 Rupees per 100 kgs.