Angel Commodities' report on Soybean
NCDEX Aug Soybean see some corrections on Thursday as market participants initiated some fresh selling on good planting progress in the country. However, expectation of increase in meal exports may keep the prices near its new MSP. Government has increased the export incentives on soymeal to 10% of the free - on - board value from the current 7% till Mar 31. The area under soy bean in the country increased by 4% compared to last year sowing at 76 lakh ha as of last week, according to data released by the farm ministry. 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.
Outlook
Soybean futures are expected to trade higher on technical buying and steady improvement in demand from the oil mills after government increase customs duty on crude as well as refine soy oil to 35% and 45% respectively. However, expectation of higher sowing due to forecast of normal rains may keep prices lower.
Source: moneycontrol.com