Soyameal offtake by the domestic feed and food sector has been sluggish during the first three months of the oil year 2023-24 starting October.

Per the latest estimates released by the Soyabean Processors Association of India (SOPA), the consumption from feed sector during October-December period was 18.5 lakh tonnes (lt) — down 2.6 per cent from 19 lt in the same period last year. Similarly, the food sector consumption of soyameal was lower at 2 lt (3 lt).

Production of soyameal was also down during the period at 25.65 lt (27.14 lt) on account of lower crushing. Exports were also a tad lower at 4.09 lt ( 4.19 lt).

However, the market arrivals till December were up at at 52 lt against 50 lt in the year-ago peroid. Soyabean crushings were lower at 32.5 lt (34 lt).

Crop estimate

SOPA executive director DN Pathak said in a statement that the supply and demand estimates are based on the data collected from various sources including the government and the trade.

SOPA has estimated the crop for 2023-24 at 118.74 lt. Including the carry forward stocks, the total crop size was 142.81 lt. Based on the market arrivals and crushing data, SOPA estimates the stocks with plants, traders and farmers as on January 1, 2024 at 97 lt, marginally down from the previous year’s 101.09 lt.

Higher global supplies and the dip in prices are weighing on the domestic soyabean market with prices coming under pressure in the recent weeks.

The ex-factory prices of soyameal in Indore are now hovering around ₹39,500-40,000 a tonne against ₹45,700-46,000 in mid-November. Similarly, the FOR prices at Bedi/Kandla port, which ruled at a seasonal high of ₹47,250-47,750 in mid-November are now hovering around ₹41,500-42,000. Also the modal prices of soyabean are down and are in the range of ₹3,700-4,541 a quintal across various mandis in Madhya Pradesh on Monday.

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