Soybean prices to trade sideways to down: Angel Commodities

Angel Commodities’ report on Soybean

NCDEX Jun Soybean fell for the 4 th successive session on Tuesday tracking higher arrivals in physical market weaken spot prices on anticipation of good sowing in coming kharif season. The prices have been trading steady 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. However, there is no such announcement which leads the fall. 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%. Production forecast for soybean is pegged at 108 lakh tonnes (lt) compared to 90 lt last year due to normal monsoon forecast 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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