Soybean Report: Possibility of increase of Rs 300-400

During last week, Soybean trended mixed due to restricted demand. The sentiment in soybean remained weak due to high stocks in the domestic market and increase in production overseas. Soybean sowing has picked up pace in the US due to favorable weather. On the other hand, production estimates are being increased continuously in Brazil. Due to the cheap import of soy oil from abroad, till now the soybean demand of the plants was slow, although now the import parity of soy oil is negligible. Due to which the demand for local soya oil will increase. Due to the high import price of soy oil, local processors can increase the purchase of soyabean. Seeing the continuous falling prices, farmers and stockists are also stopping the sale. Due to which the supply of goods is tight. Due to stock holding by the farmers, the processors will have to buy by increasing the price, which will control the fall of soyabean. The prices of soy DOC have slightly weakened in the Indian market. Because the demand has become sluggish. Indian Soya DOC prices are running 80$ to 100$ higher than international. Due to the high prices, the export demand has now started slowing down. Soybean sowing may get affected due to delayed monsoon and forecast of below normal rains. Looking at the supply and demand, there is little hope of a big boom in soyabean, but if the weather turns bad, a boom can be seen. If we look at the chart of Kirti Plant, the prices have currently reached the initial level of the season. And here some stability can be seen. Soybean prices can increase by a maximum of Rs 300-400 if the weather conditions deteriorate and the demand emerges at the reduced prices of the plants. But the boom will be temporary.

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