According to Angel Commodities, Soybean futures are expected to trade sideways on reports of improved demand from the oil mills.
Angel Commodities' report on Soybean
NCDEX Feb Soybean closed lower on Tuesday mainly on profit booking from higher levels. However, spot prices have increased due to improving in physical demand. Moreover, the supplies have been diminishing slowly in the physical market. The arrivals have been lower during December compared to last year. As per, Agmarknet, 7.82 lakh tonnes (lt ) of soybean arrived in physical market in December against close to 8.6 lt last year for the same time period. SOPA increased its meal exports estimates for 2017/18 due to increased export incentives by 2% to 7% by government for all meals. Soymeal exports from the country in 2017 - 18 (Oct - Sep) are seen rising to around 20 lakh tn from previous estimate of 15 lakh tn due to a recent rise in export incentives.Outlook
Soybean futures are expected to trade sideways 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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