Soybean prices gain on low supplies

Soybean prices gained almost 10 per cent in spot markets in a week on low domestic supplies and support from overseas markets, said traders.

"Farmers have probably offloaded most of the damaged and spotted soybean stock and they want to hold the good quality stock in expectations of better prices," claimed B L Saini, a soybean trader in Indore.

Soybean crop got damaged in many areas in Madhya Pradesh in Kharif 2013 due to heavy and incessant rains at the time of harvesting, said traders.

At present, quality of soybean reaching the mandis has shown improvement, said traders. Madhya Pradesh is the biggest soybean producer in India.

Across Madhya Pradesh, around 70,000 bags of 100 kg each were supplied by farmers on Saturday which were around 350,000 bags a week ago.

Election activities and mandi closures ahead of polling is also seen as a major reason behind sudden decline in arrivals, said traders.

On price front, average auction range for soybean in Indore was Rs 3,500-4,000 per 100 kg on Saturday which was Rs 3,200-3,500 per 100 kg a week ago, said traders.

Good grading quality soybean was being sold as high as Rs 4,200-4,250 per 100 kg in Indore mandis, said traders.

Plant delivery prices have also shown improvement as the prices have gone up from Rs 3,810-3,850 per 100 kg to Rs 3,960-4,000 per 100 kg in a week.

Traders and analysts feel support from overseas markets is also pushing up the domestic prices.

"Last week, domestic markets got really good support from gains in Malaysian palm oil prices and Chicago Board of Trade soybean contracts," said a mill buyer from Indore.