Soyabean settled down by -2.22% at 3001 due to lower demand in the spot market. Further, higher production forecast too added pressure on commodity prices. However, lower-than-expected supplies from the new season crop due to delayed sowing, capped some losses in soyabean prices to some extent. However, arrivals of new crop with good quality in MP would limit the uptrend. This increased arrival pressure could keep pressure on the overall domestic market sentiments.

As per Rosario grain exchange, Argentina’s farmer may sow 20.6-20.9 million hectares of soybean in the 2014-15 seasons, up from 20.2 million hectares last year. Sowing prospects looks better owing to favorable weather over key soybean growing regions of Argentina. Soyabean arrivals have commenced in the key-growing States of Madhya Pradesh and Maharashtra and the trade is of the view that the crop will be marginally higher than last year. This is despite a drop in acreage during the kharif season following a delay in the Monsoon.

While arrivals of the new crop is seen exerting pressure on bean prices, trade sources said processors and soyameal exporters are yet to find buyers, who seem to have adopted a “wait and watch” policy in a bearish market. About 1.5 lakh bags of soyabean have arrived in Madhya Pradesh, while in Maharashtra it is around 70-80 lakh bags. At the Indore spot market in top producer MP, soybean dropped -91 rupee to 2953 rupee per 100 kgs.

Source:-Commodityonline