Last Updated : Jun 15, 2018 11:30 AM IST | Source: Moneycontrol.com

Soybean prices to trade sideways to higher: Angel Commodities

According to Angel Commodities, NCDEX Jul Soybean jumps more than 1% on Thursday on anticipation of higher domestic crushing of soybean after government increase customs duty on crude as well as refine soy oil rose by 35% and 45% respectively.


Angel Commodities' report on Soybean


NCDEX Jul Soybean jumps more than 1% on Thursday on anticipation of higher domestic crushing of soybean after government increase customs duty on crude as well as refine soy oil rose by 35% and 45% respectively. However, reports of higher acreage for next season and forecast of normal rains along with lower meal exports data from both SEA and SOPA is weighing on prices this month. Soybean acreage is 20% higher than the last year acreage according to farm ministry report. Bangladesh, one of the largest importers of soymeal from India, reduced the import duty to nil which may result into tough competition for the country from South American peers in soymeal exports to Bangladesh.  The government is likely to raise the incentive under Merchandise Exports from India Scheme on soymeal to 10% of FOB value from the current 7%.

Outlook
Soybean futures are expected to trade sideways to higher on expectation of improved domestic crushing demand due to hike in import duty for soft oil. However, higher sowing data due to forecast of normal rains may keep prices sideways.

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First Published on Jun 15, 2018 11:30 am