Soybean prices at CBOT might remain under pressure in the morning hours owing to the correction on previous rally. Following the Indian market prices might remain lower initially while overall positive trend is still intact.
Chinese demand is shifted towards U.S on concerns of lower supplies prevailing from South American regions. Major reason for 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 crushers. End of peak arrival season has also limited supplies of bean.
Bean buyers are staying away from markets as prices have increased steeply. This is expected to keep pressure on prices in Indian markets.
Courtesy: Karvy Comtrade Ltd.
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