According to Angel Commodities, NCDEX May Soybean settled lower on Monday on anticipation of normal monsoon prediction by IMD. However, due to steady demand in physical market and millers are unsure about increase demand for meal exports.
Angel Commodities' report on Soybean
NCDEX May Soybean settled lower on Monday on anticipation of normal monsoon prediction by IMD. However, due to steady demand in physical market and millers are unsure about increase demand for meal exports. The Govt. is taking up the issue with China to remove restrictions on Indian soymeal trade. However, as per SOPA, India is likely to export 90,000 tonnes soymeal in April, down around 20% from 111,800 tn a year ago, mainly due to less demand from major importers. The arrivals in the physical market have been higher during first 15 days in April at 1.27 lt compared to 1.24 lt last year for same period. According to data released by SEA, soymeal exports for Apr - Mar, rose 26.2% on year at 11.56 lt due to firm demand from EU particularly France and Germany. Meanwhile, trade body, SOPA cuts soybean production by nearly 10 lt to 83.5 lt for 2017/18 crop.
Soybean futures are expected to trade sideways to lower on mixed fundamentals of higher tariff value for soyoil and improved demand for crushing. However, normal rains in the coming monsoon season may have bearish impact on prices.
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