Soybean prices below MSP on better supply

It was the third consecutive week ended Saturday when the soybean prices reported below the minimum support price (MSP) level "" of Rs 1,100 "" at Rs 1,050-1,080 a quintal. Meanwhile, the soy oil prices recovered the loss of Rs 2-3 during the week under consideration.

Farmers improved the supply of soybean slightly in the important mandis of Madhya Pradesh to lakh to 2 lakh bags dailym from 1.75 bags.

On the other hand, the futures at National Commodity & Derivatives Exchange and Multi Commodity Exchange of India could show a marginally low trend, of only Rs 2-3, in the soybean section for December and January contracts at Rs 1,127-1,128 and Rs 1,144-1,145, respectively, owing to range-bound trading on foreign future markets of Chicago Board of Trade (CBOT) and Kuala Lumpur Commodity Exchange (KLCE).

Meanwhile, almost all the soybean extraction plants (SEPs) increased the buying prices of soybean by Rs 5-10 to maintain the parity.

On the other hand, the KLCE and the CBOT futures, already in downturn trends, showed further negative movement. Therefore, the prices of imported RBD (refined, bleached, deodorised) palm oil at Rs 371 (01-) and soy degummed oil at Rs 329 (01+) per 10 kg reported southward movement in Mumbai.

On the National Board of Trade, the settlement for the December contracts started with the first cut of Rs 342.40 followed by the second cut of Rs 340.80 and ended with last cut at Rs 339.80 with an average cut of Rs 341.

The January contracts went down further, opening at Rs 348 today and closing at Rs 346.30 touching an intra-day low of Rs 345. A few contracts were made for February at Rs 350.30.

The trend in ready stocks of soy refined oil remained unchanged at the lower levels of Rs 340-342 per 10 kg on weak demand.

Accordingly, the SEPs such as Ruchi Soya, Prestige, Dewas Soya, Kasta, Adani, General Food and Vippy Solvex purchased soybean from both mandis and stockiests at a level of Rs 1,120-1,130 a quintal, a gain of Rs 5-10 in the buying prices.

The ex-factory cost of soya meal went up by Rs 100 to Rs 7,800 a tonne, but there was hardly any demand "" either local or overseas.