12/01/2016 (Hindu Business line) - Downtrend continued in soy oil and soybean on weak global cues and slack demand in soy meal with soy refined today in local mandis today declining to Rs. 610-Rs 612 (down Rs. 13 from last week). Similarly soy solvent also declined to Rs. 585-Rs 590 (down Rs. 15 from last week) on scattered and slack buying support. Besides weak demand in soy meal both in the domestic and export market, sluggish trend in Malasiyan palm oil has also added to bearish sentiment in soy oil, said Mr Suresh Agrawal, a local soy oil trader talking to the Business Line. Slack physical demand also dragged soybean in Indore mandis on Monday to Rs. 3,700 (down Rs. 100 from last week)..

In futures soybean traded low on weak global cues and buying support with soybean's January and February contracts on the NCEDX today closing at Rs. 3,596 (down Rs. 34) and Rs. 3,723 (down Rs. 24). Plant deliveries of soybean today were also quoted lower at Rs. 3,750 (down Rs. 50 from last week) on weak demand in soy oil.

Given weak demand in soy DOC both in the export and domestic market, rally in soybean and soy oil appears unlikely in the coming days. According to Soybean Processors Association of India, (SOPA), export of Soybean meal during December, 2015 was pegged at 5,667 tons as compared to 1,94,012 tons in December, 2014 showing a decrease of 97% over the same period of last year. Soy DOC also traded lower at Rs. 32,600-Rs 33,000 a quintal on sluggish demand and buying support in soy meal.