Soybean Prices might Trade Sideways to Down
Various analysts are of the view that Soybean futures are expected to trade sideways to down. It was reported that mills have sufficient stocks which slow their purchase.
On Friday, NCDEX Soybean futures closed higher on fresh buying by the market participants on lower level buying and anticipation of improved demand but down for the week on higher stocks with the mills.
It was also observed that in first half of December, the arrivals have been lower compared to previous 15 days.
About 3.72 lakh tonnes of soybean arrived in physical market in December against close to 5 last year for the same time period.
On the other side, in the second half of October, about 7.41 lakh tonnes arrived in the market.
For 2017 – 2018, SOPA increased its meal exports estimates since the government has increased export incentives by 2% to for all meals.
As per the view of SOPA, Soymeal exports from the country in 2017 – 18 are seen rising to around 20 lakh tonne from the previous estimate of 15 lakh tonne due to a recent rise in export incentives.
Therefore, soybean futures are expected to trade sideways to down on reports that mills have sufficient stocks which slow their purchase.
Soybean prices will be supported by the higher incentives for oil meal export, good meal exports and improved estimates for meal exports.