Soybean prices to trade sideways to higher: Angel Commodities
Angel Commodities’ report on Soybean
NCDEX Jun Soybean jumps higher on short covering initiated by market participants on expectation of better demand as govt is planning to hike import duties of soft oil – soy oil, rapeoil and sunflower oil. Moreover, diminishing arrivals and good crushing demand from the oil millers are also driving the prices higher. The prices have fallen in April on reports that the soymeal exports have been lower at the start of new financial year. In April, Soybean meal exports drastically reduce to 45,209 tonnes compared to 1.24 lakh tonnes. As per latest USDA monthly report, for the next season, production forecast for soybean is pegged at 108 lakh tonnes (lt) compared to 90 lt last year due to normal monsoon forecast while domestic crushing will increase 11% to 91 lt amid higher import duty and weaker rupees.
Soybean futures are expected to trade sideways to higher on expectation of improved crushing demand and diminishing arrivals of soybean in the physical market. Moreover, normal rains in the coming monsoon season may have bearish impact on prices.
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