Soybean prices to trade lower: Angel Commodities

Angel Commodities’ commodity report on Soybean

NCDEX Soybean August futures closed lower last week to fall 2 weeks low tracking  weak international prices and lower edible oil  prices. Currently, market participants liquidate their long positions on anticipation of steady demand for soybean in coming weeks due to sufficient supplies of edible oil in the country. As per government data, soybean planting fell 10.4% to 99 lakh hectares compared with the same period last year. Last year, the acreage was 110 lakh hectares. Kharif sowing of soybean fell so far during the period due to a drop in acreage in Madhya Pradesh, the country’s largest producer of soybean, as most farmers shifted to more profitable crops such as cotton due to poor returns from oilseeds last year.  CBOT November soybean  futures  closed lower on Friday with the  market  registered its biggest weekly fall in a year, weighed down  by crop – friendly weather across key U.S. producing states. Soybean prices have been pressured by forecasts of showers in Iowa and Minnesota, the No.2 and No.3 soy – producing states in the United States. Soybeans this month are setting pods, the key stage for determining yields.

Outlook

Soybean futures are expected to trade lower due to steady demand and lower acreage in kharif.  Moreover, good crop conditions of soybean central India may pressurize prices. However, expectation of good crushing demand on reports of hike in import may support prices.

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