iGrain India - Weekly Review - Soybean Market (Nov 22-28, 2024)
- In Maharashtra, soybean prices showed improvement due to the government's purchase program, although there was a delay in the formation of the new state government. The government had announced the purchase of soybean at Rs 6000 per quintal, but due to the political delay, the purchase is taking place at the minimum support price (MSP) of Rs 4892 per quintal.
- This MSP purchase has provided relief to farmers, especially since the market price had significantly dropped.
- As a result, the wholesale market and plant delivery prices saw an increase of Rs 50-100 per quintal during the week of Nov 22-28.
- In contrast, Madhya Pradesh saw a softer market, despite government purchases, with a slower pace of buying.
- The Union Agriculture Ministry has set a target to buy over 33 lakh tonnes of soybean during the 2024-25 marketing season. However, the purchase pace has been slow, indicating that meeting the target could take longer than expected.
- Soybean prices came under pressure due to a decline in soya refined oil and soya meal prices.
- The international price of soy oil has dropped by $100 per tonne, which is expected to reduce import costs for India.
- Despite normal domestic and export demand for soya meal, there has been no significant price increase.
- In Madhya Pradesh and Maharashtra, the price of refined soy oil softened by Rs 1-3 per kg.
- Notably, prices in Kota fell by Rs 15, in Mumbai by Rs 10, in Kandla by Rs 50, and in Hadiya by Rs 15 per 10 kg during the week.
- The arrival of soybean at the national level increased during the week:
- Nov 22: 4.85 lakh bags
- Nov 25: 6 lakh bags
- Nov 26: 6.75 lakh bags
- Nov 27: 6.75 lakh bags
- Nov 28: 6.75 lakh bags
- The price of soya DOC (De-oiled Cake) showed fluctuations, but the bullish trend was dominant over the bearish trends during the week.