Angel Commodities’ report on Soybean
NCDEX Jul Soybean closed lower due to profit booking by the market participants on expectation of good sowing. However, there expectation good physical demand due to anticipation of higher domestic crushing of soybean after government increase customs duty on crude as well as refine soy oil to 35% and 45% respectively. Prices have been under pressure on forecast of normal rains and lower meal exports data from both SEA and SOPA is weighing on prices this month. Soybean acreage till last week is 56 % higher than at 50,000 ha as compared to 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.
Soybean futures are expected to trade sideways to down on technical corrections on expectation of higher sowing due to forecast of normal rains but expectation of improved domestic crushing demand due to hike in import duty for soft oil may support prices.
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