Weekly Review-Soybean

28-Dec-2024 07:27 PM

Soybean prices rise due to impact of government procurement

Weekly Review – Soybean (21-27 December)

Soybean Prices Rise Due to Increased Government Procurement
During the week of 21-27 December, soybean prices experienced a notable increase, driven by a rise in government procurement activity. As the government agencies ramped up their procurement efforts, the demand from crushers and processors surged. This led to a price increase of ₹75 to ₹160 per quintal across the top soybean-producing states of Madhya Pradesh, Maharashtra, and Rajasthan. However, despite the rise in prices, the soybean price still remained below the Minimum Support Price (MSP). By the end of the week, over 6.50 lakh tonnes of soybean had been procured by the government.

Impact on Soybean Oil (Refined) Prices
The increase in soybean prices has had a direct impact on soybean refined oil prices. The price of refined soybean oil rose by ₹30 to ₹40 per 10 kg during the week. In Ujjain, the price increased by ₹45 to ₹1250 per 10 kg, while in Latur, Maharashtra, it also saw a jump of ₹45, reaching ₹1245. Other regions like Kota, Mumbai, Kandla, and Haldia also witnessed price hikes, with increases ranging from ₹15 to ₹50 per 10 kg.

Arrival Trends
Soybean arrivals at the national level ranged between 3.10 lakh bags to 3.45 lakh bags per day (each bag weighing 100 kg). Due to falling prices earlier, farmers had slowed down the selling of their stocks, but if the market continues to show bullish signs, soybean arrivals are expected to pick up in the coming weeks.

Soybean De-Oiled Cake (DOC) Price Surge
The price of soybean de-oiled cake (DOC) saw a significant increase, with prices rising by ₹700 to ₹1000 per tonne. The increase in DOC prices was attributed to higher production costs and strong demand. In Maharashtra, the price of DOC increased by ₹1500-₹2000 per tonne, reflecting a tighter supply and strong market demand for animal feed.