Soybean prices to trade sideways to down
According to Angel Commodities, Soybean futures are expected to trade sideways to down on expectation of revival of monsoon in central India. However, expectation of good crushing demand may keep the prices supportive.
Angel Commodities’ report on Soybean
NCDEX Soybean August futures slipped by about 2% on Thursday as market participants have initiated fresh selling on hope that monsoon rains will cover soybean areas this weekends. The market arrivals have been diminishing and there is also good demand. According to SOPA press release, India’s exports of soymeal rose 56.1% on year to 64,000 tonnes in June. As per government data, a rea under soybean crop across the country for the 2017 – 18 kharif was 53.6 lakh hectares till last week, up by about 1 0 % on year . Last year, the acreage was 48.6 lakh hectares. As per SOPA, as of June – end, soybean inventories with farmers were at 36 lakh tonnes, over three times the amount a year ago. CBOT August soybean futures closed lower on Thursday despite good exports data and Chinese agreement to purchase US beans. USDA forecast, soybean production at 115.8 mt, up 0.1 million on increased harvested area. China’s soybean imports dropped from the month before to 7.69 million tonnes in June, below market expectations due to plentiful stocks at crushers and a change in taxes.
Soybean futures are expected to trade sideways to down on expectation of revival of monsoon in central India. However, expectation of good crushing demand may keep the prices supportive.