Soybean prices gain on low domestic supplies

Soybean prices have gained more than 10 per cent from the beginning of the current month on low supplies in the domestic markets, said traders.

Soybean prices in Indore market auctions were Rs 3,500-3,650 per 100 kg compared with Rs 3,200-3,300 per 100 kg in the beginning of the current month.

Plant delivery prices were Rs 3,750-3,800 per 100 kg compared with Rs 3,350-3,450 per 100 kg in the beginning of the month. Indore is the soybean trade hub of the country.

"Other factors like export incentives and local demand also supported the market but prices mainly went up due to low domestic supplies," said P Goyal, a soybean trader in Indore mandi.

Average daily arrivals in Madhya Pradesh are around 65-70 thousand bags of 100 kg each which was 70-80 thousand bags last month, said traders. Current supplies are considered extremely low by traders and there are no signs of improvement in the coming days. Traders feel the prices may gain further in the coming days due to forecasts of below normal monsoon.

The India Meteorological Department (IMD) on Wednesday predicted below normal monsoon this year with north-east and central India among the most affected states.