Soybean prices to trade sideways to down: Angel Commodities

Angel Commodities’ report on Soybean

NCDEX Jun Soybean edged lower last week on profit booking by the market participants. The prices have been on uptrend on expectation of better demand for crushing from oil mills as govt is planning to hike import duties of soft oil – soy oil, rapeoil and sunflower oil.  The government is likely to raise the incentive under Merchandise Exports from India Scheme on soymeal to 10% of free – on – board value from the current 7%. Soybean acreage is expected to be higher in coming kharif season as prices are attractive for the farmers.  Production forecast for soybean is pegged at 108 lakh tonnes (lt) compared to 90 lt last year due to normal monsoon forecast while domestic crushing will increase 11% to 91 lt amid higher import duty and weaker rupees as per USDA monthly report.

Outlook
Soybean futures are expected to trade sideways to down on normal rains and expectation of improved sowing data. However, good crushing demand and diminishing arrivals of soybean in the physical market may keep prices supportive.

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