After a continues gains, soybean prices declined on Friday. NCDEX soybean future prices fell almost Rs.26 or 0.8% before correction, soybean futures touched day’s high level of Rs.3,316 despite on seasonal higher arrivals in physical markets, good demand from crushing units amid prospects of higher demand of soy oil in next week has supported soybean spot prices.
Soybean arrivals across the country have increased by over 66% from previous week meanwhile, Maharashtra state govt.’s has extended soybean procurement dates in the state till November 15th. However, along with this expectation of good soybean exports increasing as China, opening its door for Indian oil meals after ban from 2012 may support prices, still supply pressure on the bumper crop from all regions may limit any major gains in the prices.
India domestic soy oil prices corrected last week in both sport and future market more overtaking cues from weak CBOT soy oil prices and CPO prices, good demand in the festive season and strong basis will contain the losses in soy oil futures for near futures. Govt. will be probably revising its import tariffs in this week and govt. to continue to with higher tariffs on soy oil to support soybean prices from free-fall during peak arrivals season.