Soybean prices down on weak demand, bearish overseas cues

Soybean prices declined almost Rs 100-150 per 100 kg in spot markets in a fortnight due to weak demand from crushers, said mandi traders.

On Monday, soybean prices in mandi auction were Rs 3,550-3,750 per 100 kg compared with Rs 3,600-3,900 per 100 kg a fortnight ago, said traders.

Plant delivery prices were Rs 3,825-3,860 per 100 kg against Rs 3,850-3,900 per 100 kg couple of weeks ago.

"Weak soy product demand and lack of support from overseas markets have affected the crusher's intake," said Hitesh Agrawal, a soybean trader in Indore mandi.

Currently, both soymeal and soyoil demand is extremely low which is affecting the soybean buying in the domestic markets, claimed traders.

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

Soymeal export demand is low as the overseas buyers are finding the Indian prices higher compared with other international suppliers, said soymeal traders.

Domestic soyoil intake is low as its prices are higher compared with the other edible oils, said traders.

Also, bearish overseas cues are affecting the domestic market sentiment, said traders.

Increased global supplies due to good crop prospects in South American countries like Brazil and Argentina are putting pressure on soybean prices worldwide, said analyst.

Brazil and Argentina are number two and three soybean producers in the world after the USA.

Low domestic supply is the only support to the prices at present, said mandi traders.

Farmers are not bringing their produce to the markets due to declining prices, said traders.

Currently, average daily arrivals in Madhya Pradesh is around 100,000 bags of 100 kg each which were around 250,000 bags a month ago.

Madhya Pradesh is the number one producer of soybean in India followed by Maharashtra and Rajasthan.