iGrain India - Soybean prices remain soft despite government procurementWeekly Review: Soybean (28 December to 3 January)Soybean Prices:
- Despite government procurement by NAFED in key producing states (Madhya Pradesh, Maharashtra, and Rajasthan) at the minimum support price (MSP) of Rs 4892 per quintal, soybean prices remain under pressure.
- Soft prices of soy oil and soy meal both domestically and globally continue to influence the wholesale market price of soybean.
- Price movements during the week:
- Madhya Pradesh: Fell by Rs 50-100, reaching Rs 4300-4400 per quintal.
- Maharashtra: Decreased by Rs 100-150, falling to Rs 4200-4300 per quintal.
- Rajasthan: Dropped by Rs 125, settling at Rs 4300 per quintal.
- The price of refined soy oil declined by Rs 25.30 per 10 kg.
- Imports of soybean oil increased by 3% to 4.20 lakh tonnes in December 2024 compared to November. A similar increase is expected in January 2025 due to the cheaper price of soybean oil compared to palm oil, and adequate stocks in exporting countries.
- Price changes for refined soy oil:
- Kota: Down by Rs 20 to Rs 1260 per 10 kg.
- Kandla: Dropped by Rs 35 to Rs 1215 per 10 kg.
- Haldia: Fell by Rs 25 to Rs 1210 per 10 kg.
- Daily arrivals in major soybean producing states range from 2.80 to 3.45 lakh quintals.
- In Maharashtra, despite promises to purchase soybean at Rs 6000 per quintal, there is no evidence yet to support this rate.
- Stock situation: Producers have ample stocks of soybean but are compelled to sell at much lower prices due to the prevailing market conditions.
- Government procurement is progressing slowly and remains behind the target.
- The price of soya DOC decreased by Rs 1000 per tonne, with a notable drop of Rs 1300 per tonne in Madhya Pradesh. This price drop reflects weak domestic and export demand.