Weak demand for meal may drag soyabean

Our Correspondent Updated - December 03, 2012 at 09:14 PM.

Weak global cues and selling pressure outmanoeuvring demand have led to a sluggish trend in soya oil prices in the past few days. Soya refined on Monday ruled at Rs 695-700 for 10 kg, while soya solvent declined to Rs 663-65 for 10 kg.

On the back of weak foreign support, soya oil in the past one week has declined by Rs 10. Soya refined December contract on the NBOT closed at Rs 724.50 after opening at Rs 720.50 in the morning. On the NCDEX also, buying support lifted soya oil with its December and January contracts closing at Rs 722 (up Rs 11.65) and Rs 708.90 (up Rs 16.50) respectively.

Soyabean also traded lower on weak demand in soya DOC and global cues. On Monday, soyabean in Madhya Pradesh mandis declined to Rs 2,090-3,100 a quintal amid arrival of 2.5 lakh bags. Arrival in Indore and Dewas mandis was recorded at 8,000 bags each, while it was 9,000 bags in Ujjain mandi.

Plant deliveries in soyabean also declined to Rs 3,160-80 on weak buying support from crushers. Soy seeds December and January contracts on the NCDEX closed at Rs 3,153 (up Rs 47) and Rs 3,185 (up Rs 73.50) respectively.

According to Mukesh Purohit, a local soya oil manufacturer, given weak foreign support and slack demand in soyameal, soyabean may see some decline in the coming days before rising.

Soya DOC continued to trade lower on lack of buying support both in the export and domestic market. On Monday, soya DOC ruled steady in the domestic market at Rs 26,500 a quintal.

Published on December 3, 2012 15:44