Soybean prices rise 12.4% month-on-month

7 Nov 2022 , 08:35 AM

In the benchmark market of Indore, soybean prices increased by 12.4% month over month and by 2.3% week over week. After five months of gloomy trading, prices have produced a positive breakout.

The Ministry of Consumer Affairs, Food & Public Distribution announced the elimination of stock restrictions on edible oils and oilseeds in a notification on November 1st, 2022. The large retail chain and wholesale dealers are immediately excluded from the stock limit directive.

Following this announcement, the price of soybeans increased and broke out of the narrow sideways range of Rs5,000—5,300 per quintal that had been present for the previous two weeks. After trading in the negative for five months, the price of soybeans has provided a bullish breakout.

The lifting of the edible oil and oilseed stock restriction will also raise the overall demand for oilseeds, which will benefit prices.

In the short to medium term, it is anticipated that soybean prices in Indore will continue to rise, with an upside target of Rs5,800—6,000. Unless it is trading below the trend reversal threshold of Rs5,015, prices would trade bullishly.

The domestic pricing for edible oil and oilseeds was stable in addition to the domestic fundamentals due to the positive feeling in the market for the entire edible oil complex.

Due to decreasing US output and the unpredictability of the Black Sea grain corridor arrangement, the price of soybeans in November increased by 4.6% week over week on the CBOT (Chicago Board of Trade), while the price of soybean oil in December increased by 7.7% week over week and by 12% in October.

Pristine Palm oil November Due to strong demand and the forecast of lower output in November, future prices in BMD (Bursa Malaysia Derivatives) increased by 9.3% week over week and 16% during October.

Domestic edible oil prices are also reflecting higher global prices as soy oil in Indore increased by 5%, crude palm oil in Kandla increased by 5.6%, and mustard oil in Jaipur increased by 3.6% week-over-week.

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