Soybean prices to trade sideways to lower: Angel Commodities

Angel Commodities’ report on Soybean

NCDEX Soybean August futures close the last week on positive note on reports of lower sowing compared to last year. Prices have traded in a range last week on good stocks and steady demand. As per government data, area under soybean crop across the country for the 2017 – 18 kharif was 84.6 lakh hectares till last week, down about 1 7.8 % on year. Last year, the acreage was 102.8 lakh hectares.  According to SOPA press release, India’s exports of soymeal rose 56.1% on year to 64,000 tonnes in June.  As of June – end, soybean inventories with farme rs were at 36 lakh tonnes, over three times the amount a year ago.  CBOT November soybean closed higher last week on forecast of hot U.S. weather and deteriorating U.S. crop ratings. According to COT report, soybean speculators trim net short position by 11,852 contracts to 12,133 in week to july 18.

Outlook

Soybean futures are expected to trade sideways due to lower acreage and expectation of good crushing demand on reports of hike in import duty. However, expectation of revival of monsoon in central India may pressurize prices. Mustard seed futures expected to trade sideways due to normal demand from the industrial buyers as supplies sufficient in the physical market.

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