The rally seen in soya seed and soya oil for the past few days came to an end today on weak foreign support and revival of monsoon in the State. Fresh bout of rains lashing the State for the past two days have helped standing crop of soyabean to a large extent, leading to a decline in buying support , said Mr Mukesh Purohit, a soya oil trader.
Encouraged by fresh monsoon showers, buying interest in both soyabean and oil remained sluggish. Soya refined on Monday declined to Rs 751-55 for 10 kg (Rs 755-58) on slack demand. Similarly, soya solvent also traded lower at Rs 721-25 for 10 kg (Rs 725-30) on scattered buying support. Soya oil futures also traded lower on weak global cues and slack buying support with August contract on the National Board of Trade here closing Rs 4.50 lower at Rs 799.50. On the NCDEX also, soya oil traded lower on weak buying support with its August and October contracts closing at Rs 4,900 a quintal (down Rs 164.50) and Rs 4,028.50 (down Rs 167.50).
Traders are, however, sceptical about any major fall in soya oil in the coming days, considering a revival in demand ahead of the festival season next month.
Arrival of soyabean in State mandis declined to 15,000-20,000 bags on account of rains in various parts of the State. In mandis across Madhya Pradesh, soyabean declined by Rs 150 to Rs 4,750-4,850 a quintal. Arrival in Indore mandis was recorded at merely 1,500 bags. Plant deliveries in soyabean also declined to Rs 4,900-50 on sluggish demand. With monsoon eluding the State for over a week or so, prices of soyabean in State mandis and plant deliveries have been ruling high with plant deliveries in the past one month going as high as Rs 1,300 a quintal. Similarly soyabean prices went up by over Rs 1,000 a quintal in the past one month.
According to traders, if monsoon rains continued in the State at its present pace, soya seed prices will further decline in the coming days. On the other hand, bullish trend continued in soya DOC with prices in the domestic market going up to Rs 4,500 a quintal. Aided by strong buying support from the domestic market, soya DOC prices in the past one week have gone up by Rs 3,500.