According to Angel Commodities, NCDEX Oct Soybean closed lower last week due to profit booking by the market participants expecting bumper crop during next season.
Angel Commodities' report on Soybean
NCDEX Oct Soybean closed lower last week due to profit booking by the market participants expecting bumper crop during next season. As per 1 st advance estimate 2018/19, soybean production is forecast about 22.5 % higher at 134 .6 lakh tonnes on year. The soybean area in the country up 6.3% at 112.6 lakh ha compared to last year. According to the data released by SEA, India's soy meal exports down 32% on year to 59,643 tn in August due to dull demand from major importers. For Apr - Aug, India's soymeal exports down by 4% on year at 3.72 lakh tonnes. However, there is anticipation of good physical demand for crushing ue to expectations over rising exports to China. China has shown interest in buying soybean de - oiled cake produced in Maharashtra, which will help soybean prices to rise above MSP.
Outlook
Soybean futures expected to trade lower on bumper crop prospects due good rains in soybean growing areas states. However, expectation of improving exports demand for soy meal exports and MSP procurement may support prices.
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