The Soybean market in Maharashtra had its share of ups and downs in recent times. Last week, it opened at Rs. 5170 per quintal on 11 September 2023 and closed at Rs. 5150 per quintal on 16 September 2023. The primary reason behind this downturn was the waning demand for Soybeans and the ample stocks within the market. Let’s delve into the details and understand what’s been happening in this dynamic market.
Despite the drop in Soybean prices, some positive news was found in the stock report. In August 2023, there was a substantial increase in Soybeans arrival, totalling 6 lakh tons. The cumulative Soybeans arrival between October 2022 and August 2023 also reached a significant figure of 106 lakh tons, a remarkable 27% rise compared to 2022. During this period, a whopping 100 lakh tons of Soybeans were crushed, indicating a 30% increase from 2022. At the start of September 2023, there were 38.7 lakh tons of Soybean stocks available, representing a 20% growth from 2022.
As per the market experts, the Soybean crop situation across the country is normal, with no major reports of damage. Although weak rainfall in August 2023 affected 15% of the crops in major Soybean producing regions, in September 2023 the rainfall has somewhat compensated for the earlier shortfall. Recent heavy rainfall in certain districts of Madhya Pradesh and Northern Maharashtra has caused localized crop damage, but overall production is expected to remain on par with 2022.
There might be a slight increase in Soybean arrivals, towards the end of September 2023. However, the real challenge is anticipated in mid-October 2023. Several factors, including rising imports of edible Oils, more than adequate stocks, and weak demand for Soybean Oil and Deoiled Cakes (DOC), are expected to exert pressure on prices.
Soybean prices experienced only a modest uptick over the past week. Despite ample stockpiles, businesses are refraining from making purchases at elevated prices. Furthermore, the demand for Soybean Oil and Deoiled Cakes has been below typical levels.
A mild price recovery is possible in the coming weeks, potentially triggered by a slight delay in the new Soybeans’ arrival. However, market participants should remain cautious as the overall outlook is influenced by various factors, making the Soybean market in Maharashtra volatile.