High supplies drag oilseed prices lower: Angel Broking

Views of Mr. Ritesh Kumar Sahu (Fundamental Analyst - Agri Commodities, Angel Commodities Broking):

"Soybean April futures touched its lowest prices for the season today 7th April 2017 on higher supplies and steady demand from the oil millers. Similarly, mustard seed also fell for second consecutive week on arrival pressure and cheap imports of edible oil.

The prices of soybean on National Commodities and Derivative Exchange (NCDEX) decline to Rs. 2,837 a quintal, loss of about 12% since mid January. Since March soybean is trading in a range 2800-2900 per quintal as demand and supply seems to be in balance while the buyers are not interested to buy at higher levels on reports that there is sufficient supplies in the physical market.

The oils mills have procured large volumes of soybean earlier in the season at lower prices which helps them to produce derivatives products - meals and edible oil at lower prices.

We expect oilseed prices to be under pressure in coming weeks tracking weak international prices however, the monsoon forecast, tariff charges for the edible oil and declaration of minimum support prices will have impact on oilseed prices."

Source : Equity Bulls

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