Soyabean: Prices up, Less Planting, Exports Demand

Soya Bean Prices up due to Export Demand

Prices of soybean have started to improve due to decrease in sowing and increase in demand. In the current kharif season, sowing of Soyabean is about 18% less, while Soya khali's export demand is high. Soybean also has a rally in the global market, which can also strengthen the domestic market. Even in the state of Madhya Pradesh, the largest producer of Soyabean, there is a possibility of crop loss due to low sowing. Prices have started to improve with the fear of reduction in soybean land. Soybean has started trading on green mark in the futures market. All contracts of soybean at NCDEX were closed with an increase. Soybean August contract with effect of US$471.60 per mt. October US$491.30, November US$497.20 and December contracts futures closed at US$504.60 per mt.. Soybean also started moving towards US$465.10 per mt. in the spot market. Prices of soybean increased to US$460.30 per mt. in the spot market. If the traders are believed, the market is constantly getting weak, while demand for soya mills has increased due to improved export demand.

The main reason for soybean prices improvement is being considered to be less sowing. Soybean has so far sown in 8.5 million hectares across the country, which is 18 % less than last year. By this time till last year, soybean was sown in 10.3 million hectares area in the country. Soybean is also backward in the normal sowing area of the Ministry of Agriculture. According to the Agriculture Department estimates, till July 21, soybean sowing should have been done in about 9.5 million hectares in the country. The total normal area of soybean is estimated to be 11 million hectare in kharif season. The sowing of total oilseed crops of kharif season along with soybean is also lower this year. So far, 12.355 million hectares of oilseed crops have been sown, as compared to 14.482 million hectare of oilseeds during last year till date.

Increase of Soya meal Exports

According to the Soybean Processors Association of India (SOPA), the export of soyameal and made products has increased to 64 thousand mt., which is 56% more than the previous year. According to the experts soybean prices started shining since June. The reason for this has been better data on export demand, but in the second week of July it started a slight decline.

Actually, considering the predicted monsoon this year, it was estimated that sowing and production would be better. But the crop sowing figures are showing weakness. In Madhya Pradesh, there is also a possibility of crop deterioration with low sowing i.e. the production of soybean in the country this year may be lower than last year. On the other hand there are clear signs of better exports. Thirdly, the international market is bullish, whose impact is also going to fall on the domestic market.

Madhya Pradesh Soyabean production is less

Soyabean production in major state of Madhya Pradesh has sown back. Soybean is sown in Madhya Pradesh  state 4.012 million hectares so far. Soybean sowing should be sown in 5.323 million hectares in the state. Year 2016 kharif crop, in Madhya Pradesh, 5.401 million HA soya bean sowing has been done during the last year i.e. 2016, 5.546 million hectares in 2015, 5.502 million hectares in 2014, 5.880 million hectare in 2013 and 4.717 million hectare soybean in 2012. According to the Department of Agriculture, the soybean sowing is the least sown this time. Considering the people of SAPA, it can be said that keeping in view the trend of farmers, it is difficult to reach soyabean sowing in the normal kharif season to the normal level. In Madhya Pradesh, the normal area of soyabean is about 5.9 million hectares.

Indore Indian soya bean research center according, VS Bhatia stated that this year soya bean yield is lesser than last year. Traditionally who are sowing soya bean to get better return from the production they have shifted to Pulses. According to farmers Soya bean is famous by name of “Yellow Gold”. It is main crop of the state. According to government figures, it is believe  that total production area in normal situation should be 5.859 million HA.

EU 2017/18 Soybean Imports Down 39%

European Union soybean imports in the 2017/18 season that began on July 1 had reached 720,000 mts. by July 25, down 39 percent from 1.2 million tonnes at the same stage last season, official data showed on Thursday .

In soymeal, cumulative US imports so far in 2017/18 were 1.25 million tonnes, down 10 percent from 1.4 million a year ago.

Country largest producing state Madhya Pradesh this time sowing has been reduced in comparison to last year. People are attracted to make pulses sowing rather than Oil seeds. Official of state agricultures informed that this year soybean sowing has sown lesser than last year.