Commodity picks: 20 June 2016

SOYA BEAN

Soybean prices in the Indore spot markets are expected to trend lower towards Rs 3,850 a quintal in the coming days, from Rs 3,904 a quintal currently. Soybean crush margins are negative due to weak demand for oil and meal. Delay in progress of monsoon amid sufficient availability has slowed the offtake of meal the from poultry sector. Demand concerns and bearish sentiment in global markets also weighed on oil prices. Weak demand from the processing industry, amid burden of huge stocks, might weigh on soybean prices.

MAIZE

Maize prices in Gulabbagh are trading at Rs 1,445 a quintal. Prices are expected to trade higher towards Rs 1,470 a quintal in a couple of weeks following steady demand from end users, fall in arrivals in Bihar and lower rabi production in South India. Stocks with end users were reportedly lower, which would support the prices moving ahead.

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Prerana Desai,
V-P (research), Edelweiss Agri Services and Credit, Edelweiss Agri Value Chain Limited