Soyabean and soya oil continued to rise on Monday on declining arrivals, higher buying by crushers and higher export demand for soyameal.
With the monsoon continuing to play truant in producing regions of Madhya Pradesh and arrival declining to 35,000 bags in the State (2,000 bags here), soyabean prices in mandis perked up by Rs 100 at Rs 4,050-4,100 a quintal. Improved buying by crushers even at the higher rate also perked up soyabean plant deliveries by Rs 100 at Rs 4,150-4,200 a quintal. In the past one week, soyabean prices have gone up by almost Rs 300 a quintal, while soyabean plant deliveries have risen by Rs 250-300 a quintal.
Soyabean futures also traded higher on improved global cues and strong demand. July and August contracts on the National Commodity and Derivatives Exchange closed at Rs 4,295 a quintal (up Rs 137) and Rs 4,328 a quintal (up Rs 125).
Due to erratic rains, soyabean sowing in the State has so far been unsatisfactory. According to the State Agriculture Department, up to July 6 13.58 lakh hectares were sown against 23 lakh hectares up to the same period last year, primary reason for the rise in prices this year.
Traders here differ on soyabean prices in the coming days. While a section foresees soybean going as high as Rs 4,500 a quintal, others rule out any further rise as the Malwa region, the major soyabean-growing centre in the State, has received heavy rains in the past two days. With sowing to proceed in full flow, soyabean is unlikely to rise further, said soya trader Mr Sanjay Bansal.
Soyameal remains bullish on strong export demand. Soyameal prices in the port in the past one week have gone up by over Rs 2,000 a quintal to Rs 36,500-Rs 37,000 a quintal. Soya oil also ruled higher on strong demand for soyameal and erratic rains. Soya refined perked up to Rs 735-740 for 10 kg (Rs 720-725), even as demand at the higher rate remained slack. Resellers traded soya refined mostly at Rs 732-733 for 10 kg. Soya solvent ruled higher on strong global cues, though demand was scattered, with spot and delivery prices at Rs 703-707 for 10 kg ( (Rs 690-695).
Strong foreign markets and demand pushed up soya refined’s July and August contracts on the National Board of Trade here to Rs 778 (up Rs 11.80) and to Rs 793.60 (up Rs 11). On the National Commodity and Derivatives Exchange also, soya oil’s July and August contracts closed higher at Rs 783.10 and Rs 793.50. According to Mr Ramesh Malpani, a local soya oil broker, soya oil may turn bullish on demand for soyameal and improved domestic demand.