Demand for Indian soymeal from China, the world’s largest buyer

Demand for Indian soymeal from China, the world’s largest buyer, is seen growing as it levied a 25% tariff on imports of soybean from the US. Anticipation of a rise in acreage under soybean following forecast of normal monsoon may clip any sharp increase in prices. Weakness in key soybean contracts on the Chicago Board of Trade may further limit any steep rise on the domestic bourse. Favourable warm weather in the US, the world’s top grower of soybean, may result in higher acreage this year. Refined soyoil on the NCDEX and crude palm oil on the MCX may trade higher on hope of a rise in demand at lower price level in wholesale markets. Depreciation of the rupee against the dollar may also boost prices. Any sharp rise in the tropical oil would be limited, in line with the expected weakness in key crude palm oil contracts on Bursa Malaysia Derivatives. Weak exports in April are seen weighing on the sentiment for CPO. Malaysia’s palm oil exports during the Apr 1-25 are estimated lower on month, at 1.16 mln tn, according to the data from private cargo surveyors.