Angel Commodities’ commodity report on Soybean
Soybean Jun futures falls close to 2% on Friday on good sowing progress in the current kharif crop but closed higher for the week on expectation that the Minimum Support Prices (MSP) for soybean may increase by Rs.175 per quintal to Rs. 2,950 . As per Agmarknet data, arrivals of soybean during last week down by 50 % to 21,680 tonnes as compared to 43,859 tonnes in the previous week. Area under the soybean crop across the country for the 2017 – 18 kharif was at 26,900 ha till last week, up 16.5% on year. As per SOPA, arrivals of soybean in the country rose to 64 lakh tonnes during Oct – May from 46 lakh tonnes a year ago due to huge production last year. India’s oilseeds industry body has cut its soymeal export forecast by 25% from its previous outlook on appreciating rupee and a correction in global prices make Indian supplies uncompetitive. July soybean futures rose on Friday for a sixth straight se ssion, on technical buying and concerns about stressful hot weather in the U.S. Midwest. As per USDA, 2016/17 world ending stocks are estimated a t 93.2 mt, up 3.11 mt from the May projection. The weekly CFTC report showed managed money spec funds adding to their net short soybean position by 5,427 contracts in the week ending June 6. The 2017/18 world ending stocks are shown as rising 3.41 mt to 92.22 mt. As per USDA report, US soybeans is 83% planted vs 67% wk ago (79 pct 5 – yr avg).
Soybean futures are expected to trade higher due to low level buying on reduced supplies while anticipation of higher MSP may also support prices.
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