Soybean prices to trade sideways to higher: Angel Commodities

Angel Commodities’ commodity report on Soybean

NCDEX Soybean August futures  closed  higher last week on reports of lower sowing compared to last year . However, the prices are still trading in a range due to good stocks and steady demand. As per government data, soybean planting fell 10.3% to 95.7 lakh hectares compared with the same period last year. Last year, the acreage was 106.7 lakh hectares. The area under the crop fell as some farmers are shifting to more profitable crops such as cotton, as oilseeds fetched poor returns last season.  CBOT  November soybean  futures  closed lower last week due to  expectation of better weather in the US and  slower exports .  Forecasts for good growing weather in early August, the start of the key development phase for much of the soybean crop, kept gains in check.  US weekly sales for week ending 20 th July sees, net sales of 303,400 MT for 2016/2017 were down 26 % from the previous week and 8 % from the prior 4 – week average. The International Grains Council dropped their estimated 2017/18 world soybean production 3 mt to 345 mt.

Outlook

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

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