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Soybean prices have declined almost 6-8 per cent in spot markets in a weeks time on higher acreage and good crop prospects, said traders.
"Buyers are not active due to early and higher sowing and good crop prospects this year," said P Goyal, a soybean trader in Indore mandi. Prices have declined almost Rs 250 per 100 kg in mandi auctions and more than Rs 300 per 100 kg in plant delivery in the last seven days, added Goyal.
On Wednesday, in Indore mandi auction of soybean were in range of Rs 3,300-3,400 per 100 kg compared to Rs 3,550-3,650 per 100 kg a week ago, said traders.
Plant delivery prices were in Rs 3,400-3,475 per 100 kg range compared to Rs 3,740-3,790 per 100 kg last week.
According to Union Ministry of Agriculture, till July 18, area covered under soybean throughout India is 10.99 million hectares.
According to Soybean Processors Association of India (SOPA), in Kharif 2012 the total area covered under soybean was 10.69 million hectare.
This year, industry experts from trade bodies like SOPA hope for an increase of around 5-7 per cent increase in acreage and 7-10 per cent increase in ouput in Kharif 2013. Also, hopes of early arrival of new crop than usual is also putting pressure on prices, said traders. "Currently, standing soybean crop is a month old and in good condition with plant in flowering stage," said Shekhar Thakur, a soybean farmer from Dewas near Indore. If all goes well, the new crop should reach markets in the next 30-45 days, added Thakur.
With new crop arrivals the supplies are likely to go up substantially in the coming month, said traders.
Currently, the average daily arrivals in Indore are 2,500-3,000 bags of 100 kg each and across Madhya Pradesh it is 40,000-45,000 bags of 100 kg each.
