Buzz Update October-March soybean declined by 50% due to slowdown TOU

Buzz Update October-March soybean declined by 50% due to slowdown

 TOU

October-March soybean declined by 50% due to slowdown

Six months after the 2021 kharif harvest, soybean processing in India halved to 40.50 lakh tonnes by the end of March, compared to 62.50 lakh tonnes in the same period last year. This is mainly 18 per cent less traffic compared to last year. Farmers are still slow to bring it to market in anticipation of higher prices.

According to supply and demand estimates by the apex trade body Soybean Processors Association of India (SOPA), soybean arrivals in October-March stood at 61 lakh tonnes as against 74.75 lakh tonnes in the same period last year. Imports during the period were 1.90 lakh tonnes higher compared to 1.40 lakh tonnes.

SOPA estimates that traders / farmers and crushing plants had a stock of 67.45 lakh tonnes at the end of March.

Due to the decline in crushing, soymeal production also declined by 35 per cent to 32.33 lakh tonnes from 49.89 lakh tonnes in the same period last year. Soymeal imports during the same period were estimated at 4.40 lakh tonnes.

Exports fell

Soymeal exports continue to be significantly higher than last year’s levels. Exports stood at 4.72 lakh tonnes, down 71 per cent from 16.31 lakh tonnes in the same period last year. The main reason for the slowdown in L exports is the lack of price equality in the international market.

Domestic consumption of soymeal also declined marginally from 28.25 lakh tonnes to 28.50 lakh tonnes. However, growth in the food sector continued with increasing demand. In the food sector, soymeal consumption increased by 33 per cent to 4.05 lakh tonnes from 3.05 lakh tonnes in the same period last year.

SOPA estimates 118.98 lakh tonnes of soybean production in the 2021 kharif season. With carryover reserves of 1.83 lakh tonnes and imports of 3.50 lakh tonnes, the total supply is estimated at 124.22 lakh tonnes. The trade body estimates availability for crushing 88 lakh tonnes, retention for sowing 13 lakh tonnes, direct consumption of 3 lakh tonnes and carry forward of 19.72 lakh tonnes for next year.

Published

April 15, 2022

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