Soybean prices to trade sideways to lower: Angel Commodities

Angel Commodities' report on Soybean

NCDEX Aug Soybean closed lower on Tuesday due to monsoon revival and lower demand for soymeal exports. As per farm ministry, acreage under soybean is 97.1 lakh ha so far, down about 4 lakh ha from last year acreage of 101.5 lakh ha. Area in MP improved up to last year areas however in Maharashtra the area lower than last year. Edible oil imports expected to be on higher side in coming months due to lower tariffs. Government hike minimum support price by 9% or 311 rupees to 3,710 per 100 kg for 2019/20 which also helps to increase acreage this year.

Outlook

Soybean futures expected to trade sideways to lower due to revival of rains in central part of India. Moreover, declining meal exports may put extra pressure on Oilseeds as the sowing season progressing.

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