Soybean prices to trade sideways to higher @Capitalstars

According to Sources, NCDEX Oct Soybean edged higher on Thursday mainly on fresh buying initiated by the market participants on good meal exports.

Sources report on Soybean

NCDEX Oct Soybean edged higher on Thursday mainly on fresh buying initiated by the market participants on good meal exports. Government has increased the e xport incentives on soymeal to 10% of the free - on - board value from the current 7% till Mar 31. According to the latest report by the Soybean Processors' Association of India, India's soymeal exports rose 12% on year to 102,000 tn in July. Soymeal exports i n August are expected to double on year to over 100,000 tn due to robust demand from European countries. There was strong demand from Bangladesh, France and Israel boosting export of the oilmeal. The area under soybean in the country increased by 9 % at 11.1 lakh ha as of last week compared to last year sowing, according to data released by the farm ministry.

Outlook

Soybean futures are expected to trade sideways to higher due to higher crushing demand due to increase the incentives for soy meal exports. However, expectation of good area this season due to forecast of normal rains is keeping the prices
under pressure.

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