- In India, weakness continue to prevails in Soybean and soy oil market on bearish global cues.
- During past 10 days many parts of the soybean growing belt in Madhya Pradesh, Maharashtra and Rajasthan have seen monsoon showers giving relief to the farmers.
- The oil meal demand continues to remain subdued these days in domestic market due to availability of green fodder during monsoon period.
- Further, the export demand of oilmeal is also expected to remain weak in future due to tough competition from other international players as the soybean production at world level is expected to be good enough to meet the demand.
- Thus we expect that down trend in soybean is still not over and some more decline in near future is due
- However time to time some bounce back may be seen due to short covering by the sellers.
- So far as soy oil is concerned, In India the demand is likely to pick up very soon and it will remain good till winter season. "Deepawali" a festival of light in India , will be celebrated during October this yea r. this remains usually a month of very high consumption due to festive demand.
- Thus we expect that the decline in soy oil will be limited, and one should utilize the dips to make buy positions. In India, increased demand should bring prices up to certain extend despite the weak international market sentiments.
