Both soya oil and soya seeds prices in Indore mandis tumbled on weak global cues and buying support in the physical market. Besides rise in selling pressure of new soya seeds added to bearish sentiment.
Taking cues from weak foreign market and absolute lack of buying support in the physical market, soya refined oil on Monday crashed to Rs 645-48 for 10 kg (Rs 670-75).
Similarly soya solvent also slipped to Rs 600-Rs 605 (Rs 625-35) on lack of buying support.
Compared with last week, soya refined and soya solvent were down by Rs 67 and Rs 70 respectively.
Soya oil prices dropped in the futures market, too, drastically. Soya refined October contract on the NBOT closed on lower circuit at Rs 662.20. Soya oil futures on the NCDEX tumbled and closed in lower circuit with October and November contracts closing at Rs 636.70 for 10 kg (down Rs 26.50) and Rs 626.95 (down Rs 26.10).
According to Mukesh Purohit, a local soya oil manufacturer, increasing arrivals of new soyabean coupled with weak demand in the domestic market, a bullish trend appears unlikely in the coming days.
Downtrend also continued in soyabean on weak demand and rise in selling pressure as its arrival in Madhya Pradesh rose to three lakh bags.
In Madhya Pradesh, soyabean prices slipped to Rs 2,400-3,000 a quintal (Rs 3,150-3,300).
Similarly plant deliveries also declined to Rs 3,025-3,150 (Rs 3,200-3,275). October and November contracts on the NCEDX closed at Rs 3,073.50 (down Rs 128) and Rs 3,075 (down Rs 128).