NCDEX Jul Soybean fell 1.5% on Monday on profit booking as there are chances of higher planting this season but monsoon rains will be very crucial. As per farm ministry, acreage under soybean was 37,000 ha so far, lower than 75,000 ha from a year ago. As per latest SOPA press release, soybean arrivals for the Oct-May period pegged at 84.75 lt, up by 19.4% on year. Until April, country crushed about 67.8 lt of soybean compared to 60.5 lt last year. In the 3rd advance estimates, government increased production forecast of soybean to 137.43 lt (Vs 109.33 last year). As per SEA, country export only export 40,000 tonnes of soy meal in May down 41.4% y/y. Moreover, for Apr-May period, India shipped out about 58,470 tonnes of soybean meal down 59% compared to last year. 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 but lowering of tariff on edible oils and lower soyoil in international market pressurize soybean. CBOT Soybean surged to two-month high on forecasts for wet conditions in the U.S. Midwest which will further slow planting progress.
Outlook
Soybean futures expected to trade sideways due to reports of higher acreage this season. Moreover, increase edible oil imports will put extra pressure on Oilseeds as the sowing season approaching.
If you want to know more about our services, please visit Commodity Market Tips
No comments:
Post a Comment