General Characteristics:
Soybeans on crushing and solvent extraction yield soy oil at 18% recovery and soy meal. About 85% is crushed worldwide.
Soybean and soy oil 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, and 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.
Important World Soy Markets:
Indian Scenario: India produces 5-7 million tons of beans, 1 million ton of oil and 3-5 million tons of soy meal 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.
Major Trading Centres:
Indore, Ujjain, Dewas, Mandsore in Madhya Pradesh, Nagpur in Maharashtra, Kota in Rajasthan are major trading centres.
Market Influencing Factors:
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