Soybean prices to trade sideways to higher: Angel Commodities
Angel Commodities’ report on Soybean
NCDEX Jun Soybean jumps more than 2% to Rs. 3,580 per quintal from its lower levels as government is planning to hike import duties of soft oil – soy oil, rapeoil and sunflower oil within a weeks’ time. However, the prices have corrected and c losed slightly higher at 3,5 28 levels on reports of higher acreage for next season on forecast of normal rains. The Soybean Processors Association of India predicted 14 % increase in soybean cultivation area in the country. The soybean futures closed lower for 3 rd consecutive month in May. As per USDA monthly report, production forecast for soybean in India is pegged at 108 lakh tonnes (lt) compared to 90 lt last year due to normal monsoon forecast. The government is likely to raise the incentive under Merchandise Exports from India Scheme on soymeal to 10% of free – on – board value from the current 7%.
Soybean futures are expected to trade sideways to higher on expectation of improved domestic demand. However, sowing data due to forecast of normal rains may pressurize prices.
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