Indore soybean prices down on subdued demand

Soybean prices in Indore fell further as demand from crushing plants and exporters remained subdued. Bulk buyers have trimmed their purchases due to a decline in exports. In Indore, the oilseed was sold for 3,770-3,790 rupees per 100 kg, down 10-15 rupees. Arrivals in Madhya Pradesh, the largest producer, were steady at 70,000 bags (1 bag = 100 kg).

Despite weak spot cues, soybean futures on NCDEX rose marginally due to bargain buying. The April soybean contract was at 3,685 rupees per 100 kg, up 0.2% from previous close. Futures contracts of all components of the edible oil basket fell on domestic exchanges. Paring gains from the previous session, soybean futures on the National Commodity and Derivatives Exchange closed nearly 1% lower due to poor demand from soymeal exporters.

Indian soymeal is not competitive in global markets because of higher premium. Major buyers turning to Latin American countries for cheaper commodity. Weakness in soybean contracts on the Chicago Board of Trade also weighed on prices. Prices on the Chicago bourse plunged due to the persisting US-China trade spat. The US is the largest producer of soybean, while China is the top buyer.