Soybean Crushing Demand Falls, Government Stock Rises: SOPA

12-Apr-2025 09:16 AM

Soybean Crushing Demand Falls, Government Stock Rises: SOPA
★ From October to March, soybean arrivals in mandis were recorded at 72 lakh tons, compared to 70 lakh tons last year. However, crushing was limited to 60.5 lakh tons—7 lakh tons less than the previous year.
★ Due to weak demand, imports dropped significantly—from 6.25 lakh tons last year to just 1 lakh ton this year.
★ Additionally, there is a stock of 38 lakh tons with private oil units, farmers, and traders, and around 20 lakh tons with government agencies.
★ The drop in soybean crushing led to a decline in soymeal production, which fell from 53.26 lakh tons last year to 47.74 lakh tons.
★ Domestic demand also weakened, and soymeal exports dropped 17%, reaching 11.12 lakh tons from October to March.
★ According to iGrain India, soymeal consumption has declined due to increased use of DDGS (Distillers Dried Grains with Solubles).
★ DDGS has significantly impacted the oilmeal sector and oil extractors, and the situation may worsen in the future.
★ The continuous rise in ethanol production in the country is increasing the availability of DDGS, which could affect the demand not only for oilmeal but also for cottonseed, maize, sorghum, millet, and cattle feed.
★ Weaker soymeal prices in the international market have also had a strong negative impact on exports.
★ Overall, the current situation in the soybean sector is not favorable.