Weekly Review- Soybean

22-Mar-2025 08:02 PM

Soybean prices improve due to buying by millers at lower prices


Soybean Prices Show Mild Recovery on Millers’ Buying

After an extended period of price weakness, the soybean market saw some improvement this week. Increased buying from crushers and processors at lower price levels led to a ₹50-100 per quintal rise. However, despite this rebound, the plant delivery price in key producing states—Madhya Pradesh, Maharashtra, and Rajasthan—remained at ₹4,000-4,200 per quintal, significantly below the MSP of ₹4,892 per quintal.

Government Procurement & Market Impact

  • NAFED made a record purchase of 14.72 lakh tonnes of soybean in the 2024-25 Kharif marketing season, including:

    • Maharashtra: 8.37 lakh tonnes

    • Madhya Pradesh: 3.89 lakh tonnes

    • Rajasthan: 99,000 tonnes

  • However, these procurements had little impact on market prices.

  • SOPA (Soybean Processors Association of India) has requested the government to delay the sale of soybean stocks until mid-July to support prices.

Soya Refined Oil Trends

The price of soya refined oil showed a mixed trend across different markets:

  • Declined by ₹10 per 10 kg in Kota and Mumbai.

  • Dropped by ₹20 per 10 kg in Kandla.

  • Fell by ₹30 per 10 kg in Haldia.

  • Despite a decline in edible oil imports and reduced port & pipeline stocks, weak domestic demand has kept prices under pressure.

Arrival Trends

  • The daily arrival of soybean in major producing states has declined to 1.25-1.50 lakh bags (each bag = 100 kg or 1 quintal).

  • Despite reduced arrivals, prices have not shown any significant upward movement.

Production Uncertainty & Market Sentiment

  • There is a 25 lakh tonne gap between government and industry estimates of soybean production.

  • This uncertainty has created confusion in the market, with crushers and processors limiting their purchases.

  • Many millers are confident of accessing government stock in the coming months, which is keeping their purchases cautious.

Outlook

Unless there is a significant increase in demand or policy intervention, soybean prices may remain range-bound, with millers continuing to buy in a cautious and selective manner.

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