Soybean prices down on low demand

Soybean prices have declined around Rs 200-250 per 100 kg in spot markets in a fortnight due to weak soy product demand and lack of support from overseas markets, said traders.

Soybean is trading in the range of Rs 3750-3950 per 100 kg in mandi auctions in Indore compared with Rs 4000-4200 per 100 kg a fortnight ago, said traders.

Currently, plant delivery prices are Rs 3875-3950 per 100 kg as against Rs 4150-4250 per 100 kg a fortnight ago. "Weak demand for soymeal and soyoil is affecting domestic market buying," said Umesh Saini, a soybean trader in mandi.

Currently, soymeal export demand is low due to disparity in Indian and international prices and despite festivals, soyoil demand is not picking up, said traders.

Soybean is crushed to make soymeal and soyoil.

India is one of the leading soymeal suppliers to the Southeast Asian countries and among the major consumers of vegetable oils.

Also, bearish overseas fundamentals are affecting the domestic market sentiment, said traders. Some traders also feel that revival of monsoon in July has boosted the domestic crop prospects which are affecting the prices.