According to Angel Commodities, NCDEX Jul Soybean jumped more than 1.6% on Monday supported by expected increase in Minimum Support Price and lag in soybean sowing in the country.
Angel Commodities' report on Soybean
NCDEX Jul Soybean jumped more than 1.6% on Monday supported by expected increase in Minimum Support Price and lag in soybean sowing in the country. The area under soybean in the country was at 8.59 lakh ha as of last week, down 44.1% from a year ago, according to data released by the farm ministry. Area under soybean in MP is down by 64% while in acreage is down in Maharashtra by 49% and Rajasthan 28%. In Madhya Pradesh, area under soybean was at 205,000 ha, significantly lower than 569,000 ha sown in the year - ago period. Moreover, improved soy meal exports and reports that China may cut its import tariff on soybeans from India, South Korea, and Bangladesh also support prices last week. According to SOPA, India's soymeal exports in June will likely top 100,000 tonnes, up 44% on year, due to robust demand.
OutlookSoybean futures are expected to trade sideways on expectation of higher sowing due to forecast of normal rains but There is expectation improved demand from the oil mills due to higher crushing of soybean after government increase customs duty on crude as well as refine soy oil to 35% and 45% respectively. Moreover, soybean meal import tax cut by China for India may keep prices higher.
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