Soyabean prices may surge on supply concern

KOLKATA: Heavy rains in Indonesia and Malaysia coupled with drought-like situation in South America may put pressure on soyabean imports in the next couple of months.

However, this is unlikely to put severe pressure on soyaoil prices as there is enough domestic supply of soyabean in the domestic market. Talking to ET, Sandeep Bajoria, CEO of Sunvin Group, said: “Soyaoil sector works according to the year that begins on November 1 and ends at October 31 next year. Generally, India produces 15 lakh tonne soyaoil and imports another 16 lakh tonne from international markets. In the present scenario, prices are likely to go up by $50-$100 per tonne. The current price is $1,280 per tonne.” The soyabean kharif crop this year has been almost equal to last season’s.

“This year the country has produced soyaseed of 89 lakh tonne. There may be fluctuation in prices in the next two months but we do not see a huge jump in prices,” said PK Sardar, executive director of Central Organisation for Oil Industry & Trade.