Soybean prices to trade sideways to down: Angel Commodities
According to Angel Commodities, Soybean futures are expected to trade sideways to down due to lower physical demand coupled good crop conditions of soybean central India.
Angel Commodities' report on Soybean
NCDEX Soybean October futures close higher as market participants initiated fresh buying in soybean on reports of lower planting this year. Moreover, progress of monsoon has not been satisfactory in soybean growing states. As per government data, soybean planting fell 10.4% to 99 lakh hectares compared with the same period last year. Last year, the acreage was 110 lakh hectares. According to a release issued by Soybean Processors Association of India (SOPA), export of soybean meal and its other value added products during July 2017 has been pegged at 0.98 lt compared to 0.29 lt in July 2016. CBOT November soybean futures tumbled nearly 3.4% on Thursday after the USDA's yield and production forecasts for soybean comes above trade expectations. The USDA put the yield at 49.4 bpa for soybean, above its previous forecast of 48.0, surprising analysts who expected a reduction. The USDA estimated world production at 347.4 million tonnes, up from 345.1 mt in July.
OutlookSoybean futures are expected to trade sideways to down due to lower physical demand coupled good crop conditions of soybean central India. However, expectation of good crushing demand on reports of hike in import may support prices.
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