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' commodity report on Soybean

NCDEX Soybean August futures were traded lower on Monday to close more than 1% down  as market  participants liquidate their long positions on anticipation of lower crushing demand as government has cut  tariff rates of palm oil for the next fortnight .  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. 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. CBOT  November soybean futures closed lower due to improving in crop rating in the US for soybean coupled with  down in export  inspection. For soybeans, 48% of the nation’s crop is setting pods vs. a 45% five - year average. The U.S. soybean crop good/excellent rating is at 59%, slightly ahead of last week’s 57% rating. The USDA pegged soybean blooming at 82% vs. a 80% five - year average. The USDA reported soybean export inspections at 476,186 MT, down 15.75% from last week and 19.93% lower than this time a year ago.

Outlook

Soybean futures are expected to trade sideways due to steady demand and lower acreage in kharif. Moreover, 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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