Soya seeds and soya oil continued to rule sluggish on weak domestic demand and global cues. Though mandis across Madhya Pradesh remained closed on Thursday on account of Rang Panchami , in private trading soya refined remained at Rs 565-568 for 10 kg. Because of Rang Panchami , trading in soyabean and soya oil was weak. A soya oil firm (Sarvottam) from Bhopal quoted soya refined at Rs 562-563, but it could hardly attract buyers. Trading in soya solvent was also dull. In delivery, soya solvent was quoted at Rs 530, while in the spot, it was quoted at Rs 528 for 10 kg.

Besides weak Malasiyan palm oil futures and lack of festival demand, buyers' support in soya oil continued to decline. Moreover, arrivals of new mustard oil in the market have also made soya oil bearish. Contrary to the decline in Malaysian palm oil futures, soya oil futures, both on the NBOT and the National Commodity and Derivatives Exchange (NCDEX), traded higher. Soya refined April contract on the NBOT closed about Rs 4 higher at Rs 598.4, after opening at Rs 594 in the morning. Soya refined April contract on the NBOT on Wednesday had closed Re 1 higher at Rs 603.20. Similarly, soya oil April and May contracts on the NCEDX closed about Rs 3 and Rs 4 higher at Rs 599.4 and Rs 606.6 respectively.

On the other hand, with negligible arrival of soyabean in State mandis on Thursday, soya seeds ruled steady at Rs 2,230-2,260 a quintal, while plant deliveries rates were quoted at Rs 2,270-2,380 a quintal. With soya seeds prices witnessing a steep fall recently, arrivals of soyabean in State mandis has declined to 10,000-20,000 bags daily. Stocks of soya oil at the plant level are piling up because of low demand, forcing plant operators to lower production. According to traders, arrivals of soyabean in mandis is merely one-fifth of the capacity of plants in Madhya Pradesh. It seems unlikely that soyabean prices in the State would decline beyond Rs 2,275 a quintal.

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