Soybean prices to trade sideways today: Angel Commodities

Angel Commodities’ report on Soybean

NCDEX May Soybean down close to 2.4 % last week on concern about demand from the feed industry and normal monsoon prediction by IMD which encourage stockists to sell old crops. Moreover, demand from the poultry feed manufacture is expected to slow down due to lower demand during the summer season. Millers are unsure about increase demand for meal exports as the Govt. is taking up the issue with China to remove restrictions on Indian soymeal.  As per the Directorate of Soybean  Research, output of soybean in the country is likely to increase to  140  lt in 2018 – 19 (Jul – Jun) kharif season compared with 117  lt last  year as more area is expected to come under the crop following  forecast of normal monsoon while a creage is expected to go up  by 10 lakh ha  (lh)  on year to 115  lh in 2018 – 19.

Outlook
Soybean futures are expected to trade sideways 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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