Soybean prices to trade sideways today: Angel Commodities

Angel Commodities’ report on Soybean

NCDEX May Soybean closed higher on Wednesday due to improved physical demand at lower level. However, there is still concern about demand from the feed industry and normal monsoon prediction by IMD which encourage stockists to sell old crops.  Demand from the poultry feed manufacture is expected to slow down during the summer season. Millers are also unsure about increase demand for meal exports to china.  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 due to higher acreage expected as acreage is expected to go up by 10 lakh ha (lh) on year to 115 lh in 2018 – 19 on normal monsoon.

Outlook
Soybean futures are expected to trade sideways on mixed fundamentals of good demand and higher arrivals of soybean in the physical market and stagnant meal exports. Moreover, normal rains in the coming monsoon season may have bearish impact on prices.

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