Technically Soyabean market is under short covering as market has witnessed drop in open interest by 6.25% to settled at 192805 while prices up 18 rupees.

Now MCX Soyabean is getting support at 4856 and below same could see a test of 4822 levels, and resistance is now likely to be seen at 4929, a move above could see prices testing 4968.

Soyabean yesterday settled up by 0.37% at 4891 tracking rise in overseas prices underpinned by continued robust demand from China.

Adding to a bullish sentiment bias were wet weather in top producer Brazil, which slowed harvesting and transportation of the 2020/2021 soybean crop.

Support also seen as India’s soymeal exports increased nearly six-fold to 3.36 lakh tonnes in January this year due to high demand in the global market.

According to the Soybean Processors Association of India, in January 2020, soymeal exports were 58,000 tonnes.The Soybean Processors Association of India has projected a total production of 104.55 lakh soybeans nationally in the kharif season of 2020-21.

Under this, an estimate of production of 45.44 lakh tonnes in Maharashtra, 3.60 lakh runs in Rajasthan, 3.70 lakh tonnes in Karnataka and 1.40 lakh tonnes in Gujarat has been made, while the remaining production is expected to be in Madhya Pradesh.

According to the SOPA report, domestic production of soybean was 93.06 lakh tonnes in the 2019-20 season, which is expected to jump 12.5 percent to 104.55 lakh tonnes in the 2020-21 season. Harvesting and preparation of the crop has already been completed.

In the four months from October 2020 to January 2021, about 6 lakh tonnes of soybeans arrived in the domestic months, which is 54.50 lakhs more than 9.50 lakhs over the same period last season. At the Indore spot market in top producer MP, soybean gained 32 Rupees to 5091 Rupees per 100 kgs.

Trading Ideas:
–Soyabean trading range for the day is 4822-4968.
–Soyabean gains tracking rise in overseas prices underpinned by continued robust demand from China.
–Adding to a bullish sentiment bias were wet weather in top producer Brazil, which slowed harvesting and transportation of the 2020/2021 soybean crop.
–Support also seen as India’s soymeal exports increased nearly six-fold to 3.36 lakh tonnes in January this year due to high demand in the global market.
–At the Indore spot market in top producer MP, soybean gained  32 Rupees to 5091 Rupees per 100 kgs.