Soyabean futures gained 1.6 percent to Rs 3,928 a quintal at the Derivatives Exchange (NCDEX) today on the anticipation of lower output in this Kharif season, according to a BL report. The below normal rainfall and drop in area under soyabean cultivation may impact production this year. Besides, the dry weather prevailing in the US may hit the crop yield, noted the report.
Sowing of kharif oilseeds is already on, though the pace is much slower due to weak monsoon progress. Area covered under oilseeds is around 3.13 lakh hectares, down 32 percent as of June 21, 2012. Area covered under soyabean was pegged at 13,600 hectares as against 50,000 ha last year, said the report.
The minimum support price for soyabean was increased by 30 percent to Rs 2,200 per quintal in 2012-13. Higher MSP might as well lead to increase in acreage, but the crop output would depend on the progress of monsoon, the report continued. As per the Solvent Extractors' Association of India, the domestic export of oil meal in May this year increased 8.60 percent to 351,791 tonnes from 323,907 tonnes clocked in the same period last year. However, the total export of oil meal between April-May was down ten percent to 752,218 tonnes. CBOT Soyabean settled 0.34 per cent lower yesterday on reports that the acreage has risen by 2.2 percent in the US. The US Department of Agriculture reduced the crop condition ratings for corn and soyabean to the lowest since 1988, added the report.