Indicus price monitor

Commodity for the week: Soybean

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Soybean, grown only in the kharif season, has picked up popularity over the past seven years. The 2nd Advance Estimates for 2013-14 have put the output down by 15.12 per cent. Unseasonal rain in Madhya Pradesh and Maharashtra brought down the standing crop, putting pressure on the prices over the last few months. Harvest from Brazil has now subdued because of rains, but the global market has show an uptrend. Other factors for higher prices this year include the minimum support price (MSP) for FY14 fixed 13.6 per cent higher than last year and strong pressures from the rupee that have kept a lid on cheap imports of soya oil. Despite the fact that soyabean output in India has exceeded 12 million tonnes for four years in a row, the all-India average wholesale price for a quintal of packed soya oil that crossed Rs 7,000 in 2011, has stayed above Rs 7,800 levels since April 2012. While inflation is nowhere close to the peaks seen in 2012, the market this year is set for an uptick.