The spot prices of soybean gained in the benchmark market of Indore in Madhya Pradesh on Monday tracking good demand from mills and firm cues from domestic future market which was influenced by the uptrend in the global prices of soybean seen after the reports of good crushing demand in the USA. U.S. National Oilseed processors Association reports showed crushings better than the market expectations which boosted soybean prices.
In the domestic market, supply chains remained disrupted in the first fortnight of June due to farmers’ strike in Madhya Pradesh and Maharashtra after which arrivals improved today. At the same time, crushing demand also increased with improved demand in soy oil. However, soymeal remained steady.
Soybean was offered at Rs. 2,750-2,900/100kg at Ujjain where arrivals were around 2,500 bags (60 kg eah). Prices of soybean were quoted at Rs. 2,800-2,860/100kg at Indore market, a key trading centre where arrivals were around 2500 bags. As per the market sources, spot prices of soybean were nearly Rs. 10-20/100kg up today.
Slow pace of sowing also supported soybean prices in the domestic market. As on June 15, 2017, area under soybean cultivation was 45,300 hectares in the country while it was more than one lakh hectares in the corresponding year ago time.
By 1639 IST, soybean for delivery in July was Rs. 27 or 0.96 percent up at Rs. 2,827/100kg at National Commodity and Derivatives Exchange Ltd (NCDEX) after touching high of Rs. 2,846/100kg. August delivery future contract was also Rs. 20 or 0.7 percent up at Rs. 2,893/100kg after touching high of Rs. 2,912 on the NCDEX.
At Chicago Board of Trade (CBOT), July soybean contract was 0.35 percent up at $9.43 a bushel after touching high of $9.47 by 1125 GMT.