Prices of soyabean and soyameal have come under pressure with the rise in global supplies and fall in prices. In fact, the modal prices of the bean in various mandis of Madhya Pradesh are ruling below the minimum support price (MSP) levels.
Trade feels that the Indian soyameal may be uncompetitive in the international market with the fall in global prices, which could slow down the shipments.
With the decline in global prices, we feel out-priced in the world market at these prices and that would hurt the exports going forward,” said DN Pathak, Executive Director, Soyabean Processors Association of India (SOPA). Pathak said the global prices have come down by around $100 per tonne on rising supplies.
Soyameal exports surged to 12.1 lakh tonnes (lt) from April to December 2023-24, a significant increase from the previous year’s 4.46 lt, per the latest data from the Solvent Extractors Association of India. The shortage in export supplies from Argentina during the recent months worked to India’s advantage resulting in higher shipments. However, the Indian soyameal prices as of Jan 16 were $515 per tonne ex-Kandla, whereas Argentina’s prices were $483 per tonne on CIF basis to Rotterdam.
The recovery in production in Argentina and Brazil will weigh on the global prices in the year ahead. In fact, the CBOT Soyameal continous contract was down 1.26 per cent on Friday at $353.70.
Tracking the global trend, domestic prices of soyabean and soyameal, which edged up in the past couple of months have reversed the trend in recent weeks. The ex-factory prices of soyameal in Indore are now hovering around 40,000-40,500 per tonne against 45,700-46,000 in mid-November, a decline of around 12 per cent.
Similarly, the FOB prices at Bedi/Kandla port, which ruled at a seasonal high of ₹47,250-47,750 in mid-November are now hovering around ₹42,000-42,500, a decline of around 11 per cent.
Also the modal prices of soyabean are down and ruling in the range of ₹3,800-4,730 per quintal across various mandis in Madhya Pradesh. In mandis of Khargone, the modal price was ₹3,800 on Thursday, while in Neemuch it was ₹4,700. In mid-November, the modal prices across many mandis was ranging between ₹4,800-5,200 levels. The MSP for soyabean is ₹4,600 a quintal for the 2023-24 marketing season. For the fair average quality soyabean in Indore, the price was ₹4,585 on Friday against ₹4,785 a couple of months ago, Pathak said.
Record imports of edible oils is influencing the prices of soyabean in domestic markets, said Rahul Chauhan of Igrain India. “Due to the high edible oil imports, the demand for domestic millers and crushers is very low. Also the production of soyabean and mustard is getting better,” Chauhan said.
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