Angel Commodities’ commodity report on Soybean
NCDEX Soybean July futures jumped by about 2.2 % on Monday , higher one day move for the contract on expectation of good physical buying due to rally in edible oils . Moreover, lower pace in physical arrivals and lower sowing data compared to last year also support prices. As per Agmarknet data, arrivals of soybean during last week were down 37% to 39,588 tonnes as compared to 62,976 tonnes in the previous week. A rea under soybean crop across the country for the 2017 – 18 kharif was 15.58 lakh hectares till last week, down about 19% on year. Last year, the acreage was 18.92 lakh hectares. CBOT August soybean futures closed higher on Monday due to reports of lower stocks and acreage figures from the USDA. The USDA reported U.S. June 1 soybean stocks at 963 million bushels, below an average of trade expectations. The USDA put U.S. 2017 soybean plantings at 89.513 million acres, up from its March forecast of 89.482 million but below an average of trade expectations for 89.750 million. Supplemental data from the U.S. CFTC showed large speculators expanded their net short position in CBOT soybeans by 30,965 contracts, to 146,696 lots.
Soybean futures are expected to trade higher on limited physical supplies, slow planting of soybean and expectation of good crushing demand as it is anticipated that the import duty may be increased for edible oil. Mustard seed futures expected to trade sideways due to steady demand from the industrial buyers as supplies sufficient in the physical market.
For all commodities report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.