increase customs duty on crude as well as refine soy oil to 35% and 45% respectively. Prices have been under pressure on forecast of normal rains and lower meal exports data from both SEA and SOPA is weighing on prices this month.

Soybean acreage till last week is 56% higher than at 50,000 ha as compared to the last year acreage according to farm ministry report. Bangladesh, one of the largest importers of soymeal from India, reduced the import duty to nil which may result into tough competition for the country from South American peers in soymeal exports to Bangladesh.

Mustard Jul futures edged lower on Monday due to profit booking at higher levels. But the trends looks positive due to expectation of good meal and crushing demand after government increase import duty on soft edible oil by 10-15%. According to data compiled by the MOPA, mills across the country crushed 900,000 tn of the oilseed in May much higher crushing volume compared to last year.

Refined Soy Oil Futures Closed Lower on profit booking by market participants on reports of good stocks level in the country. As per SEA monthly report, as on June 1, country’ edible oil stock (in ports and pipeline) is at highest level ever at 26.6 lt putting pressure on domestic prices of edible oils. However, the prices may increase further due to expectation of firming up prices in Brazil and Argentina after China decision to impose tariff. Moreover, increase in import duty on refine and crude soy oil may also support higher prices.

Chana Jul Futures Closed lower on Tuesday mainly on profit booking after it surged more than 6.8% in last 4 sessions due to pick up in the physical demand and fresh buying initiated by the market participants as it hit lowest levels since Jan 2015 last week. Government is trying to support prices by removing export restrictions and procuring at MSP. According to government officials, The Madhya Pradesh government has completed procurement of 1.8 mln tn of rabi-harvested chana and masur.

Turmeric closed higher on Tuesday due to fresh buying by the market participants. However, good rains in turmeric growing areas in south India is weighing on prices. It was trading sideways to lower during last 5 weeks due to steady demand and forecast of normal rains in south peninsula.

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