November 6, 2008
Soy prices suffers pressure on high arrival
Soy prices closed lower on arrival pressure with record high production estimates of soy.
Argentina's soy sowing acreage estimates is 18.20 million hectares in this season; up from 16.90 million hectares in last season.
The US soy harvest was reportedly 86 percent complete which is up from 76 percent last week but down from the average of 89 percent, according to the USDA.
Government of Indonesia removed the export duty on CPO with effect from November 1st.
The Solvent Extractors Association of India has asked to government to impose at least 30 percent import duty on CPO and 37.5 percent on RDB palmolien and 20 percent from crude soy oil from zero per cent duty on crude and 7.5 percent on refined edible oil.
Prices (NCDEX Dec Contract) closed lower at 1682.00 per qtl on Tuesday, from its high of the day (1710.00) and touched a low of 1676.00.
Prices are likely to trade sideways with short-term support and resistance.
Soy prices are expected to open higher on firm global market for short term. However, for medium term prices are expected to come down on arrival pressure with record high production estimates.