Mumbai: Soyabean prices in India have fallen in both spot and futures markets on sluggish demand from oil extractors due to a decline in soya oil and soya meal prices, traders said.
“Soya oil and soya meal prices are falling in spot markets, forcing oil mills to stay away from fresh buying,” Radha Vallabhji Purohit, a Nagpur-based trader, said on Wednesday.
“Oil mills will start buying once soya meal prices increase. Now they have enough stock to run their units for next few days,” he added.
On Wednesday, the May soyabean contract on the National Commodity and Derivatives Exchange fell by 0.85% to Rs1,511.95 per 100kg, a 4.91% fall since 2 April.
In the same period, the spot price in the Indore market fell by Rs62 to Rs1,534 per 100 kg.
“The soyabean harvest season is coming to an end and supplies are dwindling. Now farmers are holding stock anticipating better price in future and arrivals will increase once prices go up,” Purohit added.
In India, soya oil is used as edible oil while soya meal is largely used for cattle feed.
The agriculture ministry has estimated India’s oilseeds output at 23.26 million tonnes (mt) this year, down from 27.98mt in 2006.