On the strength of robust demand from crushing operations, traders, and stockists, soyabean prices, which were in a bearish mode until October’s end, have now reversed the trend. The government’s recent decision to relax the restrictions on edible oils and oilseed stock limits by exempting large chain retailers and wholesalers from the stock control order are what caused the price to reverse.
Agmarknet data show that the soyabean modal price in Indore, which was approximately 3,500 per quintal in mid-October, is now hovering around 5,400 per quintal in the first week of November. The main trade organization, the Soyabean Oil Processors Association (SOPA), according to D N Pathak, Executive Director, “The relaxing of storage control order has returned the traders back to the markets.” The general scenario is unchanged since Indian food is still not competitive in the global market.
The lifting of the stock limit and increased bulk demand, according to Tarun Satsangi, AGM – Commodity Research at Origo Commodities India Pvt Ltd, have helped soybean prices rise. In the near future, there may be an additional upside. The price of high-quality soybeans is 5,700 in the Indore mandi and 5,900 in other mandis, including Kota. In Indore, prices have risen by 600 rupees a quintal over the past week, and by about 800 rupees over the previous two weeks, he claimed.
In Madhya Pradesh, according to Satsangi, there is aggressive buying going on from millers, crushers, and huge purchasers who are coming right to the mandis to buy the grain. The prolonged rains have caused a slowdown in arrivals.”Since the stock, limits were lifted and due to worries that planting in Brazil and Argentina would be affected, the edible oil market has risen. Given the limited supply of beans and meals around the world, Indian prices are firming up in response. According to Rahul Chauhan of IGrain India, soyameal prices in South America would continue to be high, boosting Indian meal exports.