Soybean prices to trade lower: Angel Commodities

Angel Commodities' report on Soybean

NCDEX Soybean August futures fell to 2 weeks low tracking weak international prices and lower edible oil prices. Currently, market participants liquidate their long positions on anticipation of steady demand for soybean in coming weeks due to sufficient supplies of edible oil in the country. However, kharif sowing of soybean fell so far during the period due to a drop in acreage in Madhya Pradesh, the country's largest producer of soybean, as most farmers shifted to more profitable crops such as cotton due to poor returns from oilseeds last year.  As per government data, soybean planting fell 10.3% to 95.7 lakh hectares compared with the same period last year. Last year, the acreage was 106.7 lakh hectares.  CBOT November soybean futures fell to a one - month low on Thursday, pressured by beneficial Midwest rains and forecasts for cool temperatures that should boost soy yield potential. The USDA reported , net sales of 233,400 MT for 2016/2017 were up  43 % from the previous week, but down 20  % from the prior 4 - week average however, exports of 713,600 MT were up 64 % from the previous week and 93 % from the prior 4 - week average.

Outlook
Soybean futures are expected to trade lower due to steady demand and lower acreage in kharif. Moreover, good crop conditions of soybean central India may pressurize prices. However, expectation of good crushing demand on reports of hike in import may support prices. For all commodities report, click here

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