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Indian farmers are likely to expand soybean planting areas by nearly 15 percent after the government raised edible oil import tax to the highest level in more than a decade, lifting domestic oilseed prices to nearly two-year highs. Higher production of the main summer-sown oilseed could help India, the world’s biggest vegetable oil importer, trim costly imports from Brazil, Argentina, Indonesia and Malaysia. It could also mean a boost in exports of soymeal, a key animal feed, to Asian buyers such as Japan, Vietnam and Bangladesh. Soybean has been giving farmers good returns. Indian soymeal once accounted for nearly a quarter of all Southeast Asian imports, but the country’s share has been falling due to rising domestic soybean consumption amid stagnant production.

Soybean prices rose by Rs 42 to Rs 3,721 per quintal in futures trade today on accumulation of bets backed by rising overseas trend. Marketmen said widening of bets by speculators in tune with upbeat overseas sentiment, supported the upside in soybean futures prices. At the NCDEX, soybean for delivery in June contracts shot up by Rs 42, or 1.14 per cent.

Soy meal led the way, up $14/ton, with front month soy oil down 38 points. Managed money in soybean futures and options trimmed their net long position by 22,874 contracts to 170,094 contracts in the week that ended 4/24. Canola acreage in Canada is seen at 21.383 million acres in 2018, a 7% drop from a year ago and well below most expectations. Stats Canada soybean acreage intentions were reported at 6.452 million acres, down 11.41% from 2017. BAGE estimates that the Argentine soybean crop is 54% harvested, compared to the average of 43.4%. Recent production estimates have been around 38 MMT, with crushers drawing down stocks and importing soybeans in an attempt to maintain soybean meal exports at typical May levels.

According to current information of the State Statistics Committee, sunseed stocks in Ukraine totaled 3512.9 KMT as of April 1, 2018 that is 9.5% less than by the same date last year (3881.3 KMT). This included 1714.8 KMT held by growers (down 369.6 KMT or 17.7% from the same date in 2017), while storing and crushing companies accounted for 1798.1 KMT (down 1.2 KMT or 0.07%). As of April 1, 2018, soybean inventories held by crushing companies were down 16% on the year at 367.8 KMT against 438.3 KMT as of April 1, 2017. At the same time, rapeseed stocks were almost 10% lower than a year ago (57.1 KMT and 63.3 KMT, respectively).