Soybean prices down on sluggish demand

Soybean prices have declined by about 5 per cent in the spot as well as the futures market since last Monday on account of sluggish demand for soyoil and soybean meal.

The prices of soymeal and soyoil too have gone down. In Indore, the spot price of soybean has declined from Rs 1,425-1,430 per quintal to Rs 1,355-1,360 since last Monday.

The price of soybean meal has also declined from Rs 9,700-9,750 per tonne to Rs 9,400-9,500 over the same period. The price of soyoil has gone down by Rs 1 per kg to Rs 44.

At the National Commodity and Derivatives Exchange (Ncdex), soybean for December delivery also fell from Rs 1,430 per quintal to Rs 1,345 over the period. Internationally too, the price has seen a decline.

At the Chicago Board of Trade, one month soybean futures have declined from 693 cents per bushel to 681.5 cents last week.

The prices of one month soybean meal futures have declined from $197.3 per tonne to $192.4 last week.

"The outbreak of bird flu in South Korea has impacted the soybean and soybean meal prices globally as it is a major importing country. The price may see further decline in coming days," said an analyst with Karvy Commodities.

"Export shipment is not taking place owing to congestion at ports. This is also a factor affecting the prices. With the decongestion efforts on at ports and recovery in international prices, domestic prices would also improve," said Rajesh Agarwal, the spokesperson of Soybean Processors Association of India.

He, however, dismissed the impact of bird flu on prices.

At present, there is no price parity for the processors as both soybean meal and soyoil are seeing a decline in prices.

Stockists have already covered their requirements and they would not be buying, he added.