The soybean oil prices quoted at $446 per tonne, FOB Indian port, which was $367 a tonne last year.
India’s total soyabean crop is estimated to reduce to 109.33 lakh tonne for the period between October 2018 and September 2019, according to a report on the supply and demand estimates by the Soybean Processors Association of India (SOPA).
The downward revision is based on the data gathered from several levels of crushing, arrivals in the market, exports, domestic consumption of meal and direct use.
With around 1.50 lakh tonne of stock brought forward from the previous season, the total availability of the crop is expected to be at 110.83 lakh tonne. Also, around 1.80 lakh tonne of imported soybean will increase the stock to 112.63 lakh tonne.
According to the data released by SOPA, around 98.63 lakh tonne is available for crushing. While 12 lakh tonne of crop has been retained for sowing, markets witnessed around 2 lakh tonne of new arrivals this season.
The total arrivals upto September 2019 amounted to 100.25 lakh tonne, and some 93 lakh tonne was crushed until September 2019. With 1.68 lakh tonne of exports and direct use of 1.75 lakh tonne till September 2019, the stock with farmers, traders and plants stands at 2.20 lakh tonne as on October 1, 2019.
Similarly, the total production of soybean meal amounts to 75.33 lakh tonne of which 21.43 lakh tonne was exported. The domestic consumption for food was 5.50 lakh tonne while domestic consumption for feed was 47 lakh tonne, and the balance stock of soybean meal was 1.59 lakh tonne.
As per an earlier assessment of the crop by the association, the excessive rains this year is likely to affect soybean production by around 20 lakh tonne in the country and stand at 89.9 lakh tonne.
The soybean output in 2019 is likely to fall nearly 18% from a year ago. In September alone, soybean meal exports tumbled to mere 19,152 tonne as against 95,450 tonne in the preceding month, the provisional data from SEA’s (Solvent Extract Association) revealed.
SEA noted that dip in exports is primarily attributed to the disparity in export of oil meals, specifically soybean meal due to higher Minimum Support Price (MSP) in the local market.
This makes the domestic oil meals expensive in international market as compared with other origins, SEA noted. Soybean meal and castor seed meal prices hovered at a higher end in September 2019 as compared with what was seen in the same month last year. The soybean oil prices quoted at $446 per tonne, FOB Indian port, which was $367 a tonne last year.