Soybean prices are forecast to remain on higher side today owing to weaker supplies prevailing in markets. Higher exports from U.S destined to china are driving the prices higher at CBOT.
Chinese demand is shifted towards U.S on concerns of lower supplies prevailing from South American regions.
Major reason for the Chinese imports is attributed to their plan of increasing the crushing capacity in china and refilling of the reserves. South American regions production estimates declined as estimated by 4.2 million tons lower than last year.
In the domestic markets crushing margin has dropped below `500/ton which is not profitable for the crushers.
This is waning off the domestic oil supplies while the bean buyers are active in anticipation of the meal demand to revive soon which supports our positive outlook of prices.
Courtesy: Karvy Comtrade Ltd.
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