Soybean futures closed lower for the third consecutive session on Monday mainly on fresh selling initiated by the market participants tracking weak spot prices. However, the trend is still positive due to reports of good physical demand as Soybean Processors Association of India (SOPA) increased its estimates of meal exports for 2017/18. Moreover, earlier government has increased export incentives by 2% for all meals.
Mustard Jan futures continue to fall fo6 5th consecutive day on Monday due to reports of higher inventories with the traders and farmers. According to Mustard Oil Producers Association of India, mustard stock with Farmers & Processors as on 30th Nov’17 was at 13 lakh tonnes. Mills across the country crushed 475,000 tn of the oilseed in November, up nearly 6% on month.
The prices have jumped higher to its 10 months higher when government increases the import duty of all edible oils. The government raised the duty of the crude soy oil to 30% from 17.5% to support domestic oilseed industry and farmers.
Government reduced base import price of all edible oils, with the steepest plunge of $26 per tn in crude palm oil for first half of December also ease prices in the domestic market.
As per government sowing data, area under the rabi chana crop across the country was up 10.25% on year at 89.6 lakh ha as on last week. The National Commodity and Derivatives Exchange have imposed a special margin of 5% on the sell side in all running and yet to be launched chana contracts effective from Wednesday as chana is trading below the minimum support price for the third consecutive day on the NCDEX.