Angel Commodities’ report on Soybean
NCDEX Feb Soybean futures edged lower on Monday mainly on short covering as market participants are rolling over their position to far month contract. In January, soybean futures surged about 12.5% on improving physical demand tracking higher exports of soybean meal. The arrivals of soybean in the physical market slowed after the Bhavantar scheme is over in Madhya Pradesh on 19 – Jan. As per the data by Agmarknet, during first 20 days of Jan the average arrivals per day was more than 50,000 tonnes, which is now reduced to less than 20,000 tonnes. Soymeal exports up by 42% on year in December to 240,530 tonne, as per SEA press release. Soymeal exports are higher by 6% at 994,303 tonnes for the Apr – Dec period compared to last year. In second advance estimates by state government, production forecast for soybean in Madhya Pradesh by about 35% higher to 72 lakh tonnes compared to last year.
Soybean futures expected to trade sideways to higher due to improve demand for crushing. Government procurement at MSP and improving physical demand for new season crop from oil mills may keep prices supportive in coming weeks.
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