Soybean prices to trade sideways to higher: 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 Friday as market  participants are little bullish as irregular monsoon and low price  realization to farmers in the last season is discouraging sowing prospects for soybean in the country. A rea under  soybean crop  across the country for the 2017 - 18 kharif was 53.6 lakh hectares  till last week, up by about 10 % on year. Last year, the acreage was 48.6 lakh hectares. CBOT August soybean future s rallied 1.4 percent on Friday on hotter and drier forecasts for important growing areas of the U.S. Midwest.  Soybeans posted weekly gains of around 6% last week.  It was the biggest weekly rally for soybeans since October 2014. Moreover, lower than expected acreage and lower rating of the US crop.US weekly exports were the lowest since the first week of the 16/17 MY, at 278,669 MT, but were 43.2% above last year. CFTC data showed spec funds backing off their net short position by 48,467 contracts to a net position of 70,216 contracts in soybean futures and options. Projected 2017 Chinese soybean production is estimated at 14.3 mt by the Chinese National Gains and Oils Info Center, up 9.2% from last year.

Outlook
Soybean futures are expected to trade sideways to higher limited physical supplies, monsoon lag and expectation of good crushing demand. Mustard seed futures expected to trade sideways due to steady demand from the industrial buyers as supplies sufficient in the physical market.
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