Soyabean prices in central India may fall further in the next few days due to heavy selling pressure by stockists on forecast of bumper crop in the current season, supported by reduced buying interest from oil millers and sluggish demand for soya meal.
Soyabean August 2007 contract prices on NCDEX were down Rs 112 or 7% to trade around Rs 1,548 per quintal on Monday from Rs 1,660.50 per quintal quoted on July 20 while September 2007 contract prices were also down Rs 115 or 7% to trade around Rs 1,531 per quintal on Monday from Rs 1,646 per quintal on July 20.
Spot prices in Indore market were down Rs 98 or 6.2% to quote around Rs 1,543 per quintal on continued selling by stockists, a local dealer said.
?Market participants have shifted their trading interest from August to September contracts. Trading volume has increased in September contract,? a broker said. Trading volume in September contracts increased to 28,930 tonne on Monday from 18,930 tonne last month.
In the current season, the country is expected to produce bumper crop of soyabean at 8.6 million tonne as the acreage is higher and crop is performing well across major growing belts, trade sources said.
?Soyabean prices may continue to decline in the short run on continued selling pressure. Oil millers are not aggressively buying in the market as they are not getting enough orders of soya meal for export as of now and sluggish demand for poultry products in the domestic market is dampening the demand for soy meal,? an analyst with Karvy Comtrade said.
Rape-mustard seed prices may also fall further due to sluggish demand from oil millers and higher stock levels at national exchange warehouses.
On the other hand, refined soyoil futures prices are expected to trade in range bound levels as there is no fresh fundamental factor to support the prices.