Soybean prices to trade sideways today: Angel Commodities
Angel Commodities’ report on Soybean
NCDEX Soybean slipped to 17 weeks low and closed lower of third consecutive week on reports of higher acreage for next season on forecast of normal rains and expectation of good crushing demand. According to farm ministry report, soybean acreage is 20% higher than the last year acreage. The Soybean Processors Association of India predicted 14 % increase in soybean cultivation area in the country which is weighed on prices. Soymeal exports in May slipped to 41,452 tn from 48,900 tn in the corresponding period last year. As per USDA monthly report, production forecast for soybean in India is pegged at 108 lakh tonnes (lt) compared to 90 lt last year due to normal monsoon forecast. The government is likely to raise the incentive under Merchandise Exports from India Scheme on soymeal to 10% of free – on – board value from the current 7%.
Soybean futures are expected to trade sideways on expectation of higher sowing data due to forecast of normal rains. However, improved domestic demand may support prices.
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