Steep Rise Of Prices Of Soybean, Poultry Cause For Concern In The Industry

Amid growth in foreign markets, a fall in the supply of mustard in the Oil and Oilseeds was seen in markets of Delhi, leading to a decline in value in its futures trade.

SOYABEAN

New Delhi: Amid growth in foreign markets, a fall in the supply of mustard in the Oil and Oilseeds was seen in markets of Delhi, leading to a decline in value in its futures trade. However, various edible oil prices, including soybean and CPO, registered a correction due to a shortage of soybean. Traders said that the Chicago Exchange gained 0.5 percent and Malaysia Exchange gained one percent.

Soybean has an upper circuit for the third consecutive day. The prices have gone up by about 18% in the last 3 sessions themselves. The supply of soybean is stringently controlled, while there are still more than 2 months left for the crop to arrive. Despite this, the industry is not considering such an increase in futures as justified. SOPA has written to the exchange alleging price manipulation and has sought appropriate steps to control the prices. 

Government asks DOC to ban exports 

Sources believe that the government should ask DOC to ban exports in order to meet the local demand. Due to the rise in demand for soybean, the plant delivery price for the grain has jumped to Rs 9,225 a quintal in Neemuch, Rajasthan. At the same time, the plant delivery spot price of soybean grain in Nanded, Maharashtra has reached a record level of Rs 9,600. This has increased problems for the poultry industry. The next crop of soybean will be harvested in October.

An expert from the SEA Rapeseed-Mustard Promotion Council said that there is a delay of about seven-eight months in the arrival of the next crop of mustard and there has been an existing shortage of mustard due to the preparation of mustard which was done during March-April. He said that the shortage of mustard will further increase in the near future.