Soybean prices increased by 5-10 rupee on Friday, from Rs. 3695 to 3775 per qty in Indore. Prices also supported by lower arrival in the market. As major states Madhya Pradesh arrivals on Friday decreased by 90,000 – 95000 compared to 105,000 bags in previous day. Overall fundamental view is, due to better crop last year and increasing soybean prices in domestic prices may increase soybean acreage again in coming season, last are acreage was 104 M ha and this year it may increase to 109 m Ha.
Soybean oil futures have risen 2.51 cents, or 9.12%, in 2019. Soybean oil is the major feedstock for biodiesel production in the US. The 2018-19 global soybean production is estimated to increase by 8.5 per cent at 367.49 million metric tonnes with production from the US, Brazil and Argentina at 125.17 million metric tonnes, 120.50 million tonnes and 55 million tonnes respectively. Continuous dry weather in South America and further dry forecast may hamper soybean crop developments and crop number may decline compared to previous forecast while this thing will turn china’s interest again over US’s soybean imports. Soy oil prices is also on higher side as tracking gains from soybean prices.