Weekly Review-Soybean
08-Feb-2025 07:48 PM
Limited ups and downs in soybean prices amid sluggish trading
The soybean market has seen limited fluctuations in prices amidst sluggish trading during the week of February 1-7, with both the plant delivery price and demand for crushing-processing plants remaining weak. The plant delivery price of soybean in top producing states such as Madhya Pradesh, Maharashtra, and Rajasthan is significantly lower than the government's fixed minimum support price of Rs 4892 per quintal, which is impacting farmers.
Key points from the review:
Plant Price: Despite government purchases of 16-17 lakh tonnes at Rs 4892 per quintal, plant delivery prices for soybean are hovering around Rs 4200-4300 per quintal, showing limited upward movement. Weak market conditions for oilseeds have kept millers from buying soybeans at higher prices.
Soya Refined Oil: The price of refined soybean oil has seen a slight improvement. Prices rose by 10-20 rupees per 10 kg, with the most significant increase being in Mumbai (30 rupees) and Kota (15 rupees). In contrast, prices remained stable in Haldia.
Arrivals: During the week under review, daily arrivals of soybean at the national level were between 2.70 and 3.20 lakh bags, each weighing 100 kg.
Soya DOC: The price of soyabean de-oiled cake (DOC) dropped by 200-500 rupees per quintal due to weak domestic and export demand.
Global Outlook: International soybean production is seeing mixed trends. In Argentina, a severe drought is leading to reduced production estimates, while Brazil, benefiting from abundant rains, is expecting record-high soybean output.
Overall, the soybean market remains relatively quiet with limited price fluctuations, though certain factors, such as cheaper imports of soybean oil and strong government purchases, continue to influence the domestic market.