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Refined Soybean - Commodities Info

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General Characteristics

  • Soybeans on crushing and solvent extraction yield soyoil at 18% recovery and soymeal. About 85% is crushed worldwide.
  • Soybean and soyoil production of 170-185 and 25-31 million tons account for 55-58% and 25-30% of global oilseed and oil production respectively.
  • US, Brazil, Argentina, China, India are the major producers in order of production. In US, India, China crop starts arriving from Aug-Sept, while it starts from Jan-Feb in S. America.
  • In the world 55-60, 8-10 and 42-45 million tons of beans, oil and meal are traded annually.
  • USA (20-30 million tons), Brazil (12-18 million tons), Argentina (5-10 million tons) are the exporters of beans, while China (18-20 million tons) and EU (15-18 million tons) are the major importers.
  • Argentina (3-5 million tons) and Brazil (2-3 million tons) are the major exporters of oil. China (1.5-2.5 million tons) and India (1-2 million tons) are the major importers of oil.
  • Crushers, refined oil manufacturers, animal feed manufacturers and farmers are the major stakeholders in the soy value chain worldwide.

Major Refined Soyabean Markets

  • Chicago (CBOT), largest soy futures market
  • China, where beans and meal are traded at Dalian Commodity Exchange
  • Argentina and Brazil FOB determine the physical prices

Indian Scenario

  • India produces 5-7 million tons of beans, 1 million ton of oil and 3-5 million tons of soymeal in a normal year.
  • With imports, the total oil availability in the country is around 2.5 million tons.
  • Madhya Pradesh (3.5-4.5 million tons), Maharashtra, Rajasthan are the major producers of soybean in India.
  • The production is highly dependent on the monsoon and fluctuates between years.
  • Soy is a Kharif crop, sown in June-July and harvested by September-October. Peak arrivals are from October-November.
  • The prices follow the international sentiments and display very high volatility.

India in World Soy Industry

(Rounded figs.)IndiaWorld% Share
(In million tons)
Annual Seed Production61803
Annual Oil Production 1303.3
Annual Oil Imports1.5916.7
Annual Oil Consumption2.5308.3
Annual Meal Production3.51303.5
Annual Meal Exports2.5435.8
Annual Meal Consumption 11300.7

Daily Price Volatility of Refined Soyoil in India

Daily Volatility in %<< 11 - 3> 3
% Occurrence81.9517.690.36

Major Trading Centers

Indore, Ujjain, Dewas, Mandsore in Madhya Pradesh, Nagpur in Maharashtra, Kota in Rajasthan are major trading centres.

Market Influencing Factors

  • Weather at all the producing centers, domestic and international. The pod bearing period, being the most crucial.
  • The area planted, determined by the price of soybean against that of competitive crops, viz., maize, jowar, bajra.
  • International price movement, the futures market at CBOT being the major international reference market.
  • Pests and diseases.
  • The supply-demand and price scenario of competitive oils, viz., palmoil.
  • Demand for soymeal from the feed sector and the entire fundamentals of this sector.
  • The crush margin between meal, oil and seed

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