Angel Commodities’ report on Soybean
NCDEX Soybean July futures closed lower on Wednesday due to long liquidation by market participants at higher prices. The fall is in anticipation that the acreage may improve in coming weeks due to good rains in soybean cultivating states. 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. Area 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. Currently, Maharashtra is leading soybean acreage at 6.3 lakh hectares followed by MP at 5.7 lakh hectares. CBOT August soybean futures rose 1.4 percent to their highest in 3 – 1/2 months on Wednesday, supported by technical buying. 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. Crop progress report is expected to show US soybean rating at 65 – 66% to 1% lower than last week.
Soybean futures are expected to trade sideways to lower on technical selling. However, limited physical supplies, slow planting of soybean and expectation of good crushing demand may keep the prices supported.
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