- Reuters reported that India’s Food Ministry wants to double the import tax on crude edible oils and raise that on refined oils by 50%.

- Currently, it is waiting for the other ministries to give their views before passing the recommendation to the cabinet.

- A government official said that the Food Ministry has been getting requests to raise the import duties on edible oils.

- The ministry has recommended increasing the duty from 2.5% to 5% on crude oils and from 10% to 15% on refined oils.

- Other ministries including the Ministry of Commerce have to give their views on the proposal. After that, the recommendation would go to the cabinet for approval.

- USDA (US Department of Agriculture) released its monthly demand and estimates report last week. USDA raised its forecast of 2014F/2015F US soybean yield marginally from 47.1 bushels per acre to 47.5 bushels per acre.

- As a result, soybean production in US is expected to be 3.96bil bushels in 2014F/2015F versus 3.93bil bushels originally. In spite of the higher production, ending inventory is envisaged to remain unchanged at 450mil bushels due to increased crushing and exports.

- Comparing 2014F/2015F against 2013/2014F, US soybean production is anticipated to surge 17.9% to 3.96bil bushels while ending inventory is expected to expand 389.1% to 450mil bushels.

- Also, USDA has revised its forecast of 2014F/2015F world soybean ending inventory downwards from 90.7mil tonnes to 90.28mil tonnes due to lower figures for Argentina.

- USDA has left its estimate of Brazil’s soybean production unchanged at 94mil tonnes for 2014F/2015F.

- Finally, soybean prices fell last Friday as rains are forecast to arrive in Brazil. Also in the week ended 6 November 2014, US’ soybean exports fell 33% to 1.07mil tonnes from the week earlier.

Source: AmeSecurities