Lower acreage under soybean & erratic monsoon to push prices to new high

Acreage under soybean as on July 7 in the country is down 11% at 8.21 mln hectares as compared to 9.2 mln hectares in the corresponding period a year ago. Sowing in the country is down so far because of erratic monsoon in the key growing regions until first week of July. Lower availability of quality seeds also disrupted planting in the country. It is likely to pick up if the monsoon remains favorable.

In the local market, in Maharashtra, plant is selling soybean in the range of 7780-7800 rupees per 100 kg from 7100-7200 rupees in the beginning of the month. New crop soybean will arrive only in September and the availability remains thin for the crushing plants. This could probably result into prices of soybean in the local market again hitting the 8,000 rupees mark or something above it. There are also hopes that new crop soybean forward deals are being signed for a price of 5,000 rupees and above as against 3800-3900 rupees a year ago. Currently, with seed prices remaining high its immediate derivative soyoil, also continues to remain elevated. Consumers are watching the government for remedial measure as undertaken for pulses but its seems to be a long wait.  Edible oil inflation over the last few months is burning a hole in end consumers pockets.