According to Angel Commodities, We expect Soybean prices to trade down due to harvesting of new season crop.
Soybean futures closed lower for the second consecutive day on Tuesday due to arrival of new season crop from MP, Rajasthan and Maharashtra. The most-active Nov’16 delivery contract closed 0.49% down to settle at Rs. 3,074 per quintal.
As per Soybean Processors Association of India (SEA) recent survey across Madhya Pradesh, Maharashtra, and Rajasthan, India's soybean production in 2016-17 (Jul-Jun) at 10.9 mt, up 58% from the last year are also likely to keep prices under pressure. Soybean production is estimated higher in all the three states, which account for over 80% of the country's output.
U.S. soybean fell for the first time in four sessions on Tuesday, pressured by a weak cash market and by profit taking after hitting a 3- 1/2-week high earlier in the session. Soybeans drew early support from the USDA confirmation of private sales 706,500 tonnes of U.S. soybeans to China and larger-than-expected monthly soy crush figure released Monday by the National Oilseed Processors Association.
We expect Soybean prices to trade down due to harvesting of new season crop. Moreover, forecast of dry weather in Rajasthan, MP and Maharashtra may hasten the harvesting of soybean. However, demand for new season soybean crop may support prices.
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