Expect Soybean prices to trade sideways: Angel

  Angel Commodities' report on Agricultural CommoditiesSoybean

Soybean Aug futures traded on negative note and closed down 0.38% on reports on good wide spread rains in soybean growing areas in central India. There are already higher stocks and lower demand for oil as well as meal exports. Due to more than normal rainfall in June, the soybean planting in Indian has been encouraging and touched 92 lakh hac. (Govt. Data) as per latest press release by SOPA.

According to latest SEA data release, Soyameal exports plunged to a record 2,098 tonnes in Jun against the previous low of 14,046 tonnes in May and 18,017 tonnes in April.

Global update

According to USDA, US soybean planting is completed and a record 85.1 million acres of soybeans are planted. Soybean prices down on forecasts of warmer and drier weather in US soybean planted regions expect to aid crops. China imports have been good in June as the world’s largest soybean consumer imported more than 8 mt, up 27% from the year-earlier period expecting China to import large quantities of beans in July and August as well.

Outlook

We expect Soybean prices to trade sideways to down on reports of record sowing and revival of monsoon in central India. Slack demand for soybean due to sufficient stock of veg oil and meals also pressurize the prices. Considerations of Increase in customs duty by Govt. on edible oil may be positive for soybean prices.

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