With monsoon rains continuing to elude the region for the past one week and more, soybean prices hitting through the roof in local mandis. Maintaining its uptrend soybean prices in the mandis on Monday
perked up by Rs 200 to Rs 4500 a quintal. Any further delay in rains in the next 3-4 days may push soy seeds prices cross Rs 5000 mark, said Soybean Processors Association of India spokesperson, Mr Rajesh Agrawal adding that it was not only India which is suffering from weak monsoon this year, the condition is same in the United States as well, the other major soybean producing country of the world, thereby supporting bullish trend in soybean. Added to this, delay in sowing of soybean because of scarce rainfall has also lent strength to soy prices. Unlike last year, sowing of soybean in the country has got delayed by almost by a month.
According to Agrawal, till July 16, sowing of soybean so far has been completed in about 70-80% of the cultivable area on account of deficient rainfall. As compared to its prices last month, soybean prices in local mandis have almost gone up by Rs 1100 a quintal.
Strong buying support from the crushers also perked up soybeans' plant deliveries to Rs 4500- Rs 4600a quintal (Rs 4325-Rs 4400). As compared to its prices last month (June 16), soybean plant deliveries are ruling over Rs 1000 a quintal. In futures also soybean traded higher on strong global cues and buying support with its July and August contracts on the NCEDX closing at Rs 4615 a quintal (up Rs 163.50) and Rs 4692.50 (up Rs 167.50) respectively.
Strong domestic buying support also lifted soy de-oiled cake (DoC) in the domestic market to Rs 41,500 a quintal on the port (Rs 39,700), while in the domestic market, it fetched Rs 41,000 .
Arrival of soybean which had declined to 35,000 bags a back has risen to 55,000 bags in Madhya Pradesh mandis with farmers releasing their their stocks in the past couple of days as soybean prices have scaled to a new high. Arrival of soybean in Indore mandis was recorded at 3500 bags, Ujjain - 4000 bags and Dewas recorded an arrival of 6000 bags.
Soy oil prices also ruled higher on weak monsoon and scattered buying support. Soy refined in Indore mandis on Monday ruled at Rs 748-Rs 750 for 10 kg (Rs 740-45). Similarly soy solvent ruled at Rs 720-25 for 10 kg (Rs 710-15) with soy solvent witnessing some active buying support at Rs 720. In the past one month, soy oil prices in the physical market have gone up by Rs 70-Rs 75. In futures also soy oil prices ruled higher on strong global cues and buying support with soy refined August contract on the NBOT closing at Rs 804.50) against Rs 796 on Saturday.
On the NCEDX however, soy oil futures witnessed a mixed trend with itsJuly contract Rs 6.60 lower at Rs 793.40, while its August contract closed higher at Rs 804.45 for 10 kg on improved buying support.