Soybean futures expected to trade sideways: Angel Commodities

According to Angel Commodities, Soybean futures expected to trade sideways in coming days due to lower physical demand by the oil mills.

NCDEX Soybean slipped to 2-week low on Monday to close at 3,696 rupees per 100 kg due to lower demand for crushing on expectation of improving edible oil imports. It got strength earlier last week due to on forecast on below normal rains in monsoon season by Skymet. As per latest SOPA press release, soybean arrivals for the Oct-Apr period pegged at 81 lt, up by 21.8% on year. Until April, country crushed about 62 lt of soybean compared to 55.5 lt last year for same period. As SEA, soymeal exports are revised higher to 13.58 lt, up 14.3% in 2018/19. SEA revised March 2018 exports figures to 2.15 lt which is highest single month exports in last 26 months. USDA in its monthly report forecast output at 109 lt in 2019/20, down 5% compared to last year. Lower crude soybean oil stocks at port may support soybean prices but lowering of tariff on edible oils and lower soyoil in international market pressurize soybean.

CBOT Soybean edged higher on short covering and expatiation of slowing planting in coming week due to extensive showers in the US. The Crop Progress report indicated that just 19% of the soybean crop was planted on May 19, below most expectations. The 5-year average for week 20 is 47%, as last year was 53%. NASS also reported that 5% of the crop was emerged, compared to the normal pace at 17%. However, the lack of progress in U.S.-China trade talks continues to hang over the soybean market.

Outlook

Soybean futures expected to trade sideways in coming days due to lower physical demand by the oil mills. However, higher production and increase edible oil imports will put extra pressure on Oilseeds at higher levels.

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