According to Angel Commodities, NCDEX Oct Soybean closed higher for third consecutive session on Thursday due to constant rise in demand for crushing from oil mills.
Angel Commodities' report on Soybean
NCDEX Oct Soybean closed higher for third consecutive session on Thursday due to constant rise in demand for crushing from oil mills. Moreover, the arrivals have also declined by about 38% in July to 2.55 lakh tonnes compared to last year same month (4.11 lt). Government has increased the export incentives on soymeal to 10% of the free - on - board value from the current 7% till Mar 31. India's soymeal exports in July are expected to hit a six - month high of around 150,000 tn, supported by increase in demand from European countries. The area under soybean in the country increased by 6.4 % compared to last year sowing at 101.53 lakh ha as of last week, according to data released by the farm ministry. However, the central and western India is experiencing a dry spell during the last week of July which may affect standing soybean crop.
Outlook
Soybean futures are expected to trade sideways to higher on steady improvement in demand from the oil mills as government increase the incentives for soy meal exports. However, expectation of good acreage for soybean this season due to forecast of normal rains.
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