According to Angel Commodities, Soybean futures expected to trade sideways to lower due to steady demand and higher availability in the physical market.
Angel Commodities' report on Soybean
NCDEX Apr Soybean future corrected on Thursday due to ample supplies and lower soy meal exports figures. In its latest press release by SOPA, soybean arrivals for the Oct-Feb period in the current crop year pegged at 73 lakh tonnes (lt), up by 24.9% on year. As per SEA, soy meal exports were provisionally reported at 69,428 tonnes, down 6% on year compared to 73,800 tonnes. Moreover, January exports are revised lower to 86,300 tonnes from over 2.1 lt expected in the last month release. In the second advance estimates for 2018-19, govt pegged 2018-19 production at 136.9 lt, up 24.7% on year. However, SOPA expects availably of soybean for crushing, direct use and exports in 2018/19 to be about 102 lt as against 86 lt lat year.
CBOT Soybean futures rose a little due to some improved exports figures by USDA but uncertainty over trade deal with China is still pressuring prices. Weekly export Sales report showed 1.912 MMT of old crop soybean in the week that ended on March 7, was just above the top end of trade estimates and 50.6% larger than the same week in 2018. CONAB revised their 18/19 soybean crop projection to 113.459 mt, down 1.884 mt from their previous number. The USDA raised its forecast of global 2018/19 soy ending stocks to 107.17 mt, from 106.72 mt last month. Safras & Mercado estimates the Brazil soybean harvest was 52.1% complete as of March 8, compared to the 46.4% average.
Soybean futures expected to trade sideways to lower due to steady demand and higher availability in the physical market. Moreover, slower exports for soymeal from India are also pressurizing prices.
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