Soybean arrivals in Madhya Pradesh have shown substantial increase in Madhya Pradesh and have more than doubled compared with previous week, said traders.
“We witnessed around 115,000 bags of 100 kg each arrival in Madhya Pradesh today which was just 40 thousand bags a week ago,” said P Goyal a soybean trader in Indore mandi.
At Indore mandi, farmers delivered around 7,500 bags of 100 kg each compared with 3,000 bags a week ago, said mandi officials.
Traders feel farmers generally offload their inventories before sowing ends and also they want to get the price benefit.
Farmers feel soybean prices may be below current levels in the coming days as the state has witnessed early sowing this year and crop prospects are good.
At present, soybean is being sold in Indore mandi auction at Rs 3750-3825 per 100 kg and plant delivery prices were Rs 3850-3950 per 100 kg.
Soybean prices showed good gains in the previous days due to strong US dollar against the Indian rupee, said traders.
Strong US dollar means better realisation from soymeal exports and expensive soyoil imports.
India is one of the leading soymeal exporters to the southeast Asian countries and also among leading importers of vegetable oils in the world.
Currently, soybean prices in domestic markets are under pressure due to bearish macro economic factors like US Federal Reserve's signal on cut back in bond buying and slow economic growth in China.
Now, domestic factors like increased supplies may put further pressure on prices, said traders.
