Both soya oil and soyabean witnessed sluggish trend on weak global cues and slack demand in the physical market. Besides, poor demand for soyameal in the domestic market also added to bearish sentiment in soya oil and bean.
In absence of buying support, Soya refined in mandis here traded lower at Rs 738-742 for 10 kg (Rs 743-745). Soya solvent also traded lower at Rs 703-706 for 10 kg (Rs 708-712) on weak foreign markets and slack demand in the physical market. Nevertheless as compared with last week, soya oil ruled stable.
Soya oil futures also traded lower on weak foreign markets and poor buying, with soya refined August contract on the National Board of Trade closing Rs 3.60 lower at Rs 779.40. On the National Commodity and Derivatives Exchange, soya oil futures traded lower on weak buying support with its August and September contracts closing at Rs 778.90 (down Rs 7.30)and Rs 786.40 (down Rs 8.75).
Soyabean in mandis here has declined by over Rs 150 a quintal compared with last week. In Madhya Pradesh, soyabean ruled at Rs 4,280-4,400 a quintal amid arrival of 20,000 bags. Eight hundred bags of soyabean arrived in mandis here, 2,500 in Dewas, and 1,800 in Ujjain. Plant deliveries of soyabean ruled higher at Rs 4,450-4,550 a quintal on improved buying support from crushers. In futures, however, soyabean showed a mixed trend. While its August contract closed Rs 58.50 higher at Rs 4,502 a quintal on improved buying support, its October contract declined by Rs 98.50 to Rs 3,935 a quintal on slack buying support.
Soyameal fell further in the domestic market to Rs 40,000 a quintal in absence of demand from poultry manufacturers. Last week, soyameal was ruling at Rs 42,000 a quintal. According to traders, bearish sentiment in both soya oil and soyabean is unlikely to continue for long, given the rise in demand for soya oil during the festive season and revival of domestic demand for soyameal. Besides, decline in stock and delay in arrival of new crop (still two months away) will also add to bullish sentiment in soya seeds, said Mr Mukesh Purohit, a local soya seeds trader. Mr Vinod Choudhary, a local soybean broker, said release of the crop status report for soyabean by the US Agriculture Department on Monday evening is also likely to influence both soyabean and soya oil in the next few days.