Expect Soybean futures to trade sideways: Angel Commodities
Angel Commodities’ report on Soybean
NCDEX Feb Soybean fell yesterday due to fresh selling by Market participants. However, currently soybean is trading at 6 month high as supplies have been diminishing slowly in the physical market and reports that the inventories are lower compared to last year. According to SOPA, soybean inventories with farmers, traders and plant owners at the end of December were at 6.5 mt , down from 8.2 mt a year ago . The arrivals have been lower during December compared to last year. The Soybean Processors Association of India (SOPA), India’s soymeal exports during December fell 32% on year to 2 24,000 tonnes from 327,000 tonnes a year ago. Soymeal exports fell for the first time in the current marketing year starting October but exports during Oct – Dec were p egged at 579,000 tonnes, as against 507,000 tonnes a year ago.
Soybean futures are expected to trade sideways to higher on reports of improved demand from the oil mills. However, technical selling at higher levels may keep the prices under pressure. Moreover, higher incentives for oil meal export, improved estimates for meal exports and slow arrivals of soybean in physical market will support soybean prices in coming months.
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