Weekly Review-Soybean

01-Mar-2025 07:39 PM

Soybean prices remain soft due to weak demand from millers

Soybean Prices:

Soybean prices remained soft during the week due to weak demand, primarily from millers. The ongoing heavy import of cheaper soybean oil from abroad, coupled with a lack of expected increase in both domestic and export demand for soymeal, contributed to the soft pricing in the three leading soybean-producing states: Madhya Pradesh, Maharashtra, and Rajasthan. The plant delivery price of soybean ranged from Rs 4100 to Rs 4300 per quintal, while the minimum support price remained at Rs 4892 per quintal.

Stock/Sales Update:
The government agency NAFED plans to start selling soybean from its stock in the domestic market on March 3. This move may put additional pressure on prices, especially since the goods currently reaching the mandis are not being traded well. SOPA has requested to delay the release of stocks until mid-July to avoid further price suppression.

Soya Oil (Refined):
As a result of the softening soybean prices, the prices of refined soybean oil also saw a decline. Price drops were more notable in Maharashtra than in Madhya Pradesh. Specifically, refined soybean oil prices fell by Rs. 10 in Kota, Rs. 25 in Mumbai, Rs. 10 in Kandla, and Rs. 20 per 10 kg in Haldia. In the case of crude soybean oil, there was a mixed trend, with some softening in the dollar affecting prices. However, the price in high seas in Kandla increased by Rs. 10, reaching Rs. 1281 per 10 kg.

Arrival of Soybean:
Nationwide, 2.70 lakh bags of soybean arrived in the mandis on 24 February, and 2.40 lakh bags arrived on 25 February. Each bag weighs 100 kg. Despite the arrival, the trading activity in the mandis has been sluggish.

Soya Cake (DOC):
Prices for Soya DOC (De-Oiled Cake) remained stable in Madhya Pradesh with limited trading activity, while prices softened by Rs. 500-700 in Maharashtra. A slight softening was also noted in Rajasthan. Despite record government purchases at the minimum support price, wholesale market prices for soybean did not show any significant improvement.

Conclusion:
The soybean market continues to experience pressure from low demand and heavy imports of cheaper soybean oil. The upcoming release of government stocks could add further downward pressure on prices. The softening of soybean oil prices and Soya DOC indicates a continuation of sluggish market conditions across key regions.