Weekly Review-Soybean

01-Feb-2025 08:16 PM

Slight softening in soybean due to balance in demand and supply

The soybean market has shown some softening due to the balancing act between supply and demand.

The government procurement, while reaching a new record of 16.30 lakh tonnes, was still significantly lower than the targeted 33.85 lakh tonnes, causing some psychological pressure on the market.

Procurement has now halted in key producing states like Maharashtra and Madhya Pradesh, which has led to a slight decline in prices by Rs 25-50 per quintal in those regions. 

The soya refined oil sector also experienced a slowdown, with prices dropping by Rs 15-30 per 10 kg in various regions.

Despite the global oil market not showing much strength, concerns about Brazil’s floods and Argentina’s drought could influence the soybean crop and potentially drive prices up in the future. 

In terms of arrivals, daily soybean arrivals ranged from 1.50 to 3.50 lakh bags, which was lower than usual.

While the market price remains significantly below the minimum support price, the continued demand for soybean oilcake (Soya DOC) is a positive sign, with export performance improving compared to last year.