Soybean farmers and traders of the State have expressed joy at reports that monsoon rains over central India are set to abate in the coming days. The state has seen excess rains over the past few weeks, which had led to firming up of soya bean prices by 3 to 4 per cent. Traders say some sunshine will be good for the crop and that it will help in pulling down the prices.
Soya bean has been ruling at Rs 3,800 per tonne in the spot and future markets amid concerns that heavy showers in the country's main soybean producing state of Madhya Pradesh will harm the crop.
Some traders had estimated the production this year to be at the last year's level, which was 4 per cent less than the previous year. They say the area under the crop has already fallen by about 10 per cent as many farmers have switched to pulses.
"Prices of the October and November soybean contracts did go up due to excess rainfall in Madhya Pradesh," said Viral Shah, head of institutional business at Geofin Comtrade. "But if the rainfall is good, prices may come down to Rs 3,600 per quintal by August."
The soya bean crop is in the tender stage and its growth had stopped in the absence of sunlight and due to water logging in the fields.
"The soybean crop needs not only a break in rainfall but some good sunshine too," said Davish Jain, president at Soybean Processors Association of India.