According to Angel Commodities, Soybean futures expected to trade sideways in coming days due to lower physical demand by the oil mills.
Angel commodities report on Soybean
NCDEX Soybean edged higher on Monday due to short covering from lower levels to close at 3,712 rupees per 100 kg. We have seen downtrend in prices last week due to lower demand for crushing on expectation of improving edible oil imports. As per latest SOPA press release, soybean arrivals for the Oct-Apr period pegged at 81 lt, up by 21.8% on year. Until April, country crushed about 62 lt of soybean compared to 55.5 lt last year for same period. As SEA, soymeal exports are revised higher to 13.58 lt, up 14.3% in 2018/19. SEA revised March 2018 exports figures to 2.15 lt which is highest single month exports in last 26 months. USDA in its monthly report forecast output at 109 lt in 2019/20, down 5% compared to last year. Lower crude soybean oil stocks at port may support soybean prices but lowering of tariff on edible oils and lower soyoil in international market pressurize soybean.
CBOT Soybean closed lower on Tuesday as a media report that the Trump is considering large aid payments for soy farmers which may expand planting of the crop this season. President Trump is considering $2/bu trade aid for soybeans, though no other details or official announcements have been made. In a weekly U.S. Department of Agriculture report that showed farmers had seeded just 19% of their intended soybean acreage as of May 19. The fiveyear average is 47%.
Soybean futures expected to trade sideways in coming days due to lower physical demand by the oil mills. However, higher production and increase edible oil imports will put extra pressure on Oilseeds at higher levels.
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