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.
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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