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.
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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