iGrain India - Soybean remained sluggish due to weak demand from crushing mills
New Delhi. Due to import of good quantity of cheap soybean oil from abroad and indication of increase in sowing area in initial trends, the mill delivery price of soybean softened by 50-100 rupees per quintal in all three top producing states - Madhya Pradesh, Maharashtra and Rajasthan during the week of 5-11 July.
Madhya Pradesh
In Madhya Pradesh, its price fell well below the minimum support price (Rs 4600 per quintal). In Maharashtra, the price was seen around this for some units. The price of soybean in loose form fell to below Rs 4000 per quintal. In view of this, analysts have expressed the possibility of a decline in the production area of this important oilseed.
Soybean oil
The price of soybean refined oil also fell by 20 to 40 rupees per 20 kg. The units of Dewas, Mandsaur, Pithampur and Ujjain in Madhya Pradesh sold soybean refined oil by reducing the price. The same situation was also seen in Dhule, Hingoli, Latur, Nagpur and Nanded of Maharashtra. In Kota, Rajasthan, the price fell by Rs 15 to Rs 940 per 10 kg. Similarly, the price in Kandla and Haldia fell by Rs 20 each to Rs 940.
Arrival
At the national level, 1.25 lakh bags of soybean arrived in the markets on July 5, 2.40 lakh bags on July 8, 2.20 lakh bags on July 10 and 2.10 lakh bags on July 11. It is known that each bag of soybean is of 100 kg (1 quintal).
DOC
Due to weakening of soybean prices, the price of soybean DOC also softened. Its domestic and export demand remained almost normal. Soybean sowing is continuing but in view of the falling prices, farmers' interest in its cultivation may decrease.