Weekly Review-Soybean

22-Feb-2025 08:54 PM

Weekly Review-Soybean

Soybean prices improved due to some buying at lower prices

Price Movement:

• Soybean prices saw a marginal increase of Rs 25-50 per quintal, due to some buying activity at lower prices. However, they remain well below the Minimum Support Price (MSP) of Rs 4892 per quintal, with plant delivery prices hovering around Rs 4200-4300 per quintal.
• This increase in price came despite the continued imbalance in the wholesale market where soybean prices remain significantly under the MSP.

Soybean Oil (Refined):

• Soybean oil prices also experienced a rise of Rs 30-40 per 10 kg.
• Market speculation suggests that the central government may soon raise the import duty on edible oils, which could encourage crushing-processing units to purchase oilseeds from farmers at higher prices.
• Prices for refined soybean oil increased by Rs 30 in Kota and Kandla, Rs 35 in Haldia, and Rs 50 per 10 kg in Mumbai.

Arrivals and Stock:

• Soybean arrivals in mandis were steady, with around 2.30 to 2.60 lakh bags arriving daily in the week.
• Despite large stockpiles with farmers and record government purchases, there is a need for stronger demand from millers to drive prices higher.

Demand for Soya DOC:

• The demand for Soya DOC (De-oiled Cake) remains weak, leading to a softening of its prices. During the week, prices fell by Rs 500 to Rs 1000, although in some plants, prices saw a slight increase of Rs 200-500.

Outlook:

• The market shows signs of stabilization due to the slight price increase in soybeans and soybean oil, but the overall prices are still significantly lower than expected, mainly due to weak demand from millers and lower-than-usual demand for byproducts like Soya DOC. The market's future direction will depend on the government's potential policy changes and stronger miller demand.