Soyabean, its oil slip on slack demand

Weak global cues and slack demand in the physical market dragged soya oil and soyabean in mandis here on Monday. Soya refined declined to Rs 655-660 for 10 kg (Rs 660-662). Soya solvent slipped to Rs 616-620 for 10 kg. Compared with last week, soya refined is down Rs 23-25 in local mandis. However, soya oil futures rose on buying at the lower rate.

On the National Board of Trade here, soya refined oil November contract closed higher at Rs 679.20 for 10 kg after opening at Rs 661.50. The November contract opened almost Rs 20 down on Monday. Soya oil futures closed higher on the National Commodity and Derivatives Exchange (NCDEX) on rise in buying support at lower rates even as Chicago Board of Trade’s projections were negative. The November and December contracts on the exchange closed at Rs 674.35 (up Rs 8.75) and Rs 667.95 (up Rs 4.50) for 10 kg respectively.

Weak buying support also pulled down soya seeds on Monday to Rs 3,050-3,125 a quintal amid arrival of 4 lakh bags in Madhya Pradesh. In Ujjain and Indore

mandis , 14,000 bags each arrived, while 15,000 arrived in Dewas, 10,000 in Piparia and 4,000 in Sehore. Plant deliveries of soyabean ruled at Rs 3,250-3,270 a quintal, about Rs 50-70 lower than last week. On the other hand, soyabean futures traded higher from last week with its November and December contracts on the NCDEX closing at Rs 3,290 a quintal (up Rs 14.50) and at Rs 3,335 a quintal (up Rs 13).

Soyabean prices are likely to drop as it is ruling much higher than the minimum support prices even as output has increased to 127 lakh tonnes against 116.50 lakh tonnes last year.

According to the Soybean Processors Association of India here, the export of soyameal in October dipped to 51,050 tonnes from 2,34,594 tonnes in the year-ago period. According to Association spokesperson Rajesh Agrawal, total export of soyameal during April-October was 8,88,128 tonnes against 13,63,446 tonnes in the year-ago period.