Surge in soybean prices rattles trade and poultry industry alike

SOPA says surge driven by excessive speculative activity in exchanges

The surge in soybean rates in the domestic markets the past few weeks has given rise to allegations of speculators manipulating prices in the commodity markets. It has also rattled the poultry and livestock sector for whom soybean meal is a major constituent of cattle feed.

Though the price jump might be a positive signal for farmers just when they are sowing their crop, trade sources said the unprecedented rise in soybean rates in the domestic markets is not entirely driven by fundamentals and is also a handiwork of speculative activity in the commodity exchanges.

Sowing of soybean, which is