Soybean prices hit new high as international markets skyrocket, explosion could prove avian flu
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New Delhi 2 days ago
Due to the two-way movement of commodities in the world market, Indian farmers have to bear the total loss. But this time it didn’t happen. Due to the high soybean prices in the international market, soybean producers have days of income. Soybean prices have reached record highs despite a 15 percent increase in soybean crops this year over last year. However, the price of edible oils is also on the rise. Manoj Kala, president of the Indore Traders’ Association, the country’s largest soybean market, said soybean prices hovered between Rs 4,300 and Rs 4,400 per hundredweight in the Indore market a month ago, which is now increased to 4600 to 4700 rupees per quintal. While soybean income has not declined. Just a month ago, 8,000 to 1,000 bags of soybeans arrived every day, which still brings in the same amount.
Soybean planting lasts from June to August. Harvested from late October to December. Last year soybean production was 9.3 million tonnes, while this year soybean production is estimated at 10.7 million tonnes. Farmers were concerned that higher prices would lead to lower prices, but prices went up instead of down. Ajay Kedia, MD, commodity research firm Kedia Advisory, said China has been buying steadily in recent months. Large-scale soybean imports have driven up soybean prices around the world. Soybeans are also receiving support due to rising prices for edible oils. Oil companies are also processing more, which has boosted domestic demand.
According to a report by the Solvent Extractors Association of India, the wholesale price of soybean oil was Rs 108.5 per liter in December, which has now risen to Rs 114.50. DK Pathak, director of the Indian Soybean Processors Association (SOPA), says the industry has no problem with rising soybean prices. As soybean prices rise, soybean oil prices rise as well. In addition, there are export difficulties. The main reason is that the export subsidy has ceased. While the new subsidy has not yet been introduced.
Reasons for the soybean boom
China’s record purchases have led to a sharp rise in edible oil prices, an increase in soybean processing, and an increase in domestic poultry industries in the past six months, which has boosted demand for soybeans.
Avian flu can make it more difficult
Soybean producers and traders may face problems with bird flu. However, half of soybean consumption is in forage in the poultry industries. If the poultry industry is affected by bird flu, soybean prices could drop sharply.
Soy price on MCX
MonthBhav January 4084 February 3200 March 3796 April 3810 May 3830 June 3714 July 3780 August 4116 September 3866 October 4263 November 4415 December 4606 January 4747
(Price per rupee per quintal)