Soybean prices to trade sideways to higher: Angel Commodities

Angel Commodities’ report on Soybean

NCDEX  Apr Soybean see highest single day  jump in three months on Monday supported by the development that government allowed export of all edible oils in bulk , barring  mustard oil will  increase crushing  in coming weeks. Moreover, setback in monsoon during July and August predicted by global models also support prices as it may affect soybean crop during next season. The arrivals in the physical market have been lower in first 25 days of March at 1.91 lt compared to 2.8 5 lt last year for same period. The news on soybean imports in India at record high and may cross 100,000 tonnes and shipping will be mainly from the African countries of Ethiopia and Benin with which India has concessional import duty agreements.  According to data released by SEA, Soymeal exports for Apr – Feb, oilmeal exports rose 38% on year at 11.2 lt due to firm demand from Vietnam and South Korea.  Meanwhile, trade body, SOPA cuts soybean production by nearly 10 lt to 83.5 (lt ) for 2017/18 crop.

Outlook
Soybean futures are expected to trade sideways to higher on higher demand for crushing as physical supplies have been diminishing but imports have increased in the country. However, steady demand from the oil mills may keep prices in range.

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