The price of soybean called Golden Bean is currently running at Rs 4,775 on the Commodity Exchange. Soybean consumption is very high as a great source of protein and it is used in many forms. Last year in 2020, due to the corona epidemic, its demand was reduced but after the lockdown opened its demand increased. Last month, in January 2021, soybean prices have been strengthened due to the increase in exports of soy meal by six times. According to market experts, due to increasing demand for soybean, its price can also show a level of 5100 within one to two months. In such a situation, there is a chance of buying in it for commodity investors. Processed soybean is the largest source of protein and the second-largest source of vegetable oil in the world.
Price did not increase due to bird flu
Soybean production has decreased both domestically and globally but despite this, there has not been much increase in its price. The biggest reason for this is bird flu. Soybean consumption has been affected due to bird flu. Due to its consumption in other things such as milk or oil, its price remains strong. According to Kedia Commodity Director Ajay Kedia, soya oil is also getting stronger due to the rise in the price of palm oil. In such a situation, prices of soybean have gone up. Kedia believes that if the effect of bird flu ends, then the price of soybean can be seen further.
Sleeping stronger due to aggressive purchasing in China
Soya meal exports increased six-fold in January 2021. In January 2021, 3.36 lakh tonnes of soy meal was exported due to the demand of Soymeal in the global market. According to DN Pathak, executive director of the Soybean Processors Association of India (SOPA), 58 thousand tonnes of soy meal was exported in January 2020. China is currently buying commodities aggressively, due to which its prices have strengthened.
Low production due to the weather is strengthening prices
Globally, there is a shortage of soy globally due to the substantial soy crop in Brazil, USA and Argentina. Its production in India was also estimated to be 12 million metric tons, but SOPA has revised its estimate to 80 lakh metric tons. About 40 lakh metric tonnes of soybean was wasted due to bad weather. Because of this, prices are getting stronger due to the low global supply of soybeans.
Prices can go up to 5100
Due to the lack of soy crop, Kedia believes that its prices can reach 5100 in the next one and a half months. Due to the bird flu, its price has not increased much and if the bird flu ends after some time, then by then the summer season will come and its demand decreases at that time. In such a situation, its price is expected to remain around 5100. On the commodity exchange NCDEX, the price of soybean for the expiry of 19 February 2021 is 4807, the expiry price of 19 March 2021 is 4795, the expiry price of 20 April 2021 is 4788 and the expiry price of 20 May 2021 is 4800.