Soy Bean

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Contract Specifications
Commodity Name Soy Bean
Basis for price quote Ex-Warehouse Indore exclusive of Sales taxes
Trading unit  10 MT
Delivery unit 10 MT
Quotation / Base value  Rs per 100 KG (0.1 MT)
Tick size (minimum price movement) Rs 0.50 (i.e. 50 Paisa) per 100 KG (0.1 MT)
Delivery Logic Sellers option with staggered delivery
Delivery Center Basis : Indore (within a radius of 100 km from the corporation/municipal limits).
Additional Delivery Center(s)
Akola, Nagpur (Maharashtra), Sagar, Vidisha, Mandsaur (MP), Kota (Rajasthan) - (within a radius of 100 km from respective corporation/municipal limits)

Soya bean is cream colored, oval sized of a common pea. Soya bean is a kharif crop. Soya bean contains about 20% of oil and 40% of high quality protein. Soya bean is richest, easiest and cheapest available source of protein. . The processed soybean is the largest source of protein feed and second largest source of vegetable oil in the world. Soybean oil is widely used as edible oil whereas its meal is mainly used in animal feed industry. It can be grown on a variety of soils and a wide range of climates.
Crop Calendar:
Soya bean is a summer crop. Soya bean grow well in warm and moist climate. Soil temperature of 15.5 or above favours rapid generation and vigorous seeding growth. The crop cycle is of about 3 months. Plants seeding from mid-May to the beginning of july, develop pods during the time span of mid-July and harvest by mid of September to early October.

Types of Soya Oil :
74 varieties of soya bean are produced in India. Mostly, soybeans are yellow, but there are also rare varieties of black, brown and green. Soya beans mature in the pod and ripen into a hard, dry bean.

Three types of soyabeans are –
  1. Green soya beans, also known as edamame beans are fast becoming ever more popular as a healthy snack option.
  2. Mature soybeans are light brown in color and are harvested when they have reached maturity.
  3. Dried soya beans, beans are pea sized and need to be soaked overnight before being cooked.

Production :
In India, Soya bean cultivation was negligible until 1970 but it grew rapidly thereafter crossing over 10 million tonnes in 2009-10 and became the fifth largest producer of soya bean in the world today. Production increased from 5.28 miilion tones in 2000-01 to this level by having increased area for cultivation from 6.42 million hectares with yield of 822 in 2000-01 to 9.79 million hectares achieving yield of 1076 in 2009-10. Today soya bean seeds alone contributes 40% share of all total seed production and also achieved very good yield as compare to 969 yield per hectare of all total seeds production. Despite all these efforts, soybean could not be established on the plains of India except within a few pockets in Uttar Pradesh, Madhya Pradesh, and West Bengal.

Out of 10.05 million tones, Madhya Pradesh produces 5.85 million tonnes contributing approximately 59% of total production followed by Maharashtra with 2.76 million tones and Rajasthan with  0.81 million tones. The base price of Soya bean black variety is Rs 1350 and yellow variety is Rs 1390 in 2009-10 increased from 350 and 400 in 1990-91, 755 and 845 in 1999-2000. Whereas commercial bank outstanding advances against soya bean also increased up to Rs736 crore in March-2010 as compared to Rs 651 crore in March-01.

The average yield of soybean in India is about 1000 ha-1, compared with 2300–2800  ha-1 in other countries.

Soya is consumed in three forms:
  1. Whole soya bean
  2. Soya meal
  3. Soya Oil
About 80% of soya beans are crushed and by-products of soya bean are derived. Soybean is sent for crushing to get oil and cake which is further sent to extraction for removal of residual oil and to obtain its meal, India crush approximately 7 million tons out of  total 9 million tonnes  soya bean production. India domestic demand for soya meal is 2.4 million tones and export is around 3.14 million tones out of total soya bean meal production of 5.176 production.  But due to huge domestic demand of vegetable oil, the country is heavily dependent upon import to fulfill its local demand.

India is one the major exporter of Soya meal. India total export of soya meal was 3.14 million tonnes in 2009-10, acquiring the status of fourth biggest exporter of soya meal after Argentina, Brazil and United States.

Domestic demand for soya is increasing due to:

  • As soya bean is highly enriched with proteins, about two-thirds of all manufactured food products contain derivatives or ingredients made from soya.
  • Approximately two-third of India's population is vegetarians. Much of the increase in protein, consumption is expected to come from a non-meat source.
  • Due to increasing India's cattle population,, De-oiled Cake consumption of the soybean has increased up to 25% as compared to 10% few years back.
  • Export of India's soya meal has 100% potential due to price advantage as Indian soya meal is still cheaper around US $260-270 per metric ton when compared with the American or Brazilian soya meal which costs about US$275-300 per metric ton.

Soya are used as Soybeans, Soya Oil, Soya milk, ,Tofu (Soya panner), Miso, Shoyu, Soya protein, Market Products, Soya desserts, Soya cheeses, Soya yogurt and also used as Anti-cholesterol.

World Scenario :
Soybean has now become the largest source of vegetable oil and protein in the world, and its large-scale cultivation is concentrated in a few countries such as Argentina, Brazil, Canada, China, India, Paraguay, and USA, which together produces about 96% of the world's 260 million metric tons of  annual soybean production in 2009-10. United states is the world largest producer followed by Brazil, Argentina, China and India whereas China was the largest consumer of soya meal  and soya oi followed by EU-27 and United States.  China was also largest importer and United States was largest exporter of Soya bean.

World Soya bean production has increased by 23% and crossed 260 million metric tons in 2009-10 from 211 million metric tons in 2008-09 as area under Soya bean harvested was 102 million hectares has also increased by 6 million hectares. Total world consumption was 221 million Mt in 2008-09  which has been increased by 17 million metric tonnes to 238 million MT in 2009-10 ,The ending stock was 59 million Mt as compared to 42 million Mt in 2008-09. The world's average soybean yield has also increased from less than 1,000 ha-1 to 2300  ha-1

Market Influencing Factors :
  • Weather conditions  in  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., palm oil. 
  • 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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