Soybean and meal prices are under pressure due to increased global supplies.

Soybean and soybean meal prices have been under pressure as global supply increases and prices fall. In fact, the modal prices of beans are below the minimum support price (MSP) in various mandis of Madhya Pradesh. The business believes that Indian soybean meal can be competitive in the international market with falling global prices that could slow supplies.

“Due to the decline in global prices, we feel we are overpriced in the global market at these prices, which would prevent further exports,” Soybean Processors Association of India (SOPA) managing director DN Pathak said. Pathak said global prices fell by about $100 a tonne as supplies increased.

Global trend

According to the latest data from India, soy flour export will increase from April 2023 to December 2024 to 12.1 lakh tons (lt), which is a significant increase of 46 liters from last year. The lack of export shipments from Argentina in recent months has benefited India, resulting in higher shipments. However, on January 16, Indian soybean meal prices were at $515/t ex-Kandla, while Argentine prices were at $483/t CIF Rotterdam.

The recovery of production in Argentina and Brazil will weigh on world market prices next year. In fact, the CBOT Soymeal futures contract fell 1.26 percent to $353.70 on Friday.

Domestic prices of soybeans and soybeans, which have increased in recent months following global developments, have reversed the trend in recent weeks. Ex-factory soybean meal prices in Indore are currently hovering around 40,000-40,500 tonnes, compared to 45,700-46,000 in mid-November, a decline of about 12 percent. Similarly, FOB prices at Bedi/Kandla port, which touched a seasonal high of ₹ 47,250-47,750 in mid-November, are now in the range of ₹ 42,000-42,500, a decline of about 11 percent.

Soybean modal prices fell by ₹ 3,800-4,730 per quintal in various mandis in Madhya Pradesh. In Khargone mandi on Thursday, the modal price was ₹ 3,800 while in Neemuch it was ₹ 4,700. In mid-November, modal fares ranged between ₹ 4,800 and ₹ 5,200 in many mandis. For the 2023-24 marketing season, the MSP for soybean is ₹ 4,600/quintal. Pathak said the average price of soybean in Indore was ₹ 4,585 on Friday, down from ₹ 4,785 a few months ago.

Record imports of edible oils are affecting soybean prices in the domestic market, said Rahul Chauhan of Igrain India. “Due to the large import of edible oil, the demand for domestic grinders and crushers is very low. Soybean and mustard production is also improving”, Chauhan said.

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