Angel Commodities’ report on Soybean
NCDEX May Soybean closed lower on Wednesday due to fresh selling by market participants despite good exports figures for soymeal from SEA due to lower physical demand and high stocks. As per SEA, soy meal exports in March were provisionally reported at 1.94 lakh tonnes, up 175% on year. Moreover, February exports are revised higher to 1.32 lt from 69,128 tonnes reported in the last month release. Soybean meal exports in FY 2018/19(Apr-Mar) are about 13.37 lt, up 12.6% on year while for Oct – Mar period exports are up 31.8% at 9.2 lt. In its latest press release by SOPA, soybean arrivals for the Oct-Mar period in the current crop year pegged at 77 lt, up by 23.2% on year. SOPA expects availably of soybean for crushing, direct use and exports about 101.8 lt as against 86 lt last year. SEA forecast soybean production at 102.43 lt in 2018/19, up more than 23% y/y.
Soybean futures expected to trade sideways to negative in coming days on concern over higher availability of oilseed in the country and slowing soybean meal exports. Moreover, higher edible oil imports will put extra pressure on Oilseeds.
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