Soybean prices to trade sideways: Angel Commodities

A bushel of soybeans are shown on display in the Monsanto research facility in Creve Coeur, Missouri, July 28, 2014. Monsanto engineers designed a chipper to shave a tiny tissue sample off a seed to analyze the seed's genetics. If the sample is positive for desirable genetic traits, the seed is still viable so a breeder can plant it in a field test and use it in the breeding process to create more seeds of its kind. Picture taken July 28, 2014. 20 of 25 Monsanto Stand Alone Picture Package. REUTERS/Tom Gannam (UNITED STATES - Tags: ENVIRONMENT FOOD SCIENCE TECHNOLOGY AGRICULTURE) - RTR42TJN

Angel Commodities' report on Soybean

NCDEX Soybean August futures closed higher on Wednesday on reports of lower sowing compared to last year keeping the prices in a range since last week . Moreover, good stocks and steady demand is pressurizing the prices. As per government data, area under soybean crop across the country for the 2017 - 18 kharif was 84.6 lakh hectares till last week, down about 17.8 % on year. Last year, the acreage was 102.8 lakh hectares. The area under the crop fell as some farmers are shifting to more profitable crops such as cotton, as oilseeds fetched poor returns last season. In Madhya Pradesh, the acreage of the crop was at 40.1 lakh ha, down from 49.7 lakh ha in the previous year. In Rajasthan, another major grower of the oilseed, soybean was sown across 786,800 ha, as against 10.2 lakh ha in the year - ago period. CBOT November soybean futures closed higher on bargain buying lent support to soybean futures following a sharp sell - off on Tuesday. USDA on Monday afternoon said that 57% of the soybean crop was in good to excellent conditions, down 4% points from a week earlier and below market expectations.

Outlook

Soybean futures are expected to trade sideways due to steady demand but mixed lower acreage and expectation of good crushing demand on reports of hike in import may support prices. However, good crop conditions of soybean central India may pressurize prices.
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