Angel Commodities’ report on Soybean
NCDEX Jul Soybean traded on a positive note on Tuesday after reports that China may cut its import tariff on soybeans from India, South Korea, and Bangladesh. Moreover, slow start to kharif sowing in the country also supported prices. The area under soybean in the country was at 212,400 ha as of last week, down 59% from a year ago, according to data released by the farm ministry. 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. However, 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. Bangladesh, one of the largest importers of soymeal from India, reduced the import duty to nil which may result into tough competition from South American countries.
Soybean futures are expected to trade sideways on expectation of higher sowing due to forecast of normal rains but expectation of improved domestic crushing demand on hike in import duty for soft oil may support prices Moreover, soybean meal import tax cut by China for India may keep prices higher.
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