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 Oct  futures closed  little higher  on Wednesday  on  technical rebound  after trading lower in last two trading sessions.  However, there is restricted upside due to pressure by the arrival of new season soybean. As per Agmarknet data, soybean arrivals during the first 25 days is pegged at 2.28 lakh tonnes compared to 1.99 lakh tonnes in August for the same period. As per the agri ministry data, India's soybean acreage was at 10.6 million ha as on last week, down 7.7 % from a year ago. The fall in overall acreage has been led by a decline in area under the crop in Madhya Pradesh -- the largest producer -- because of poor rains in the state so far this monsoon season. U.S. soybean futures closed higher on Wednesday on technical buying and higher export demand for U.S. soybeans.  The U.S.  Department of Agriculture through its daily reporting system said private exporters sold 132,000 tonnes of U.S. soybeans to China for delivery in the 2017/18 marketing year that began Sept. 1. The USDA is expected to show 1.8 - 2.2 mt in Thursday’s Export Sales report that will be 6.2 mt for 2017/18 versus 3.6 mt last.

Outlook

Soybean futures are expected to trade on sideways on reports of new season arrivals coupled with improved physical demand from oil mill. Lower acreage in the country and improved prices of edible oil may support prices.  Mustard seed futures expected to trade sideways to higher due to rebound in physical demand form the oil mills.  It is expected that there will be good demand for crushing in the winter. However, higher carryover stocks can keep the prices under pressure.
For all commodities report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More