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Soyabean

Soyabean contains only a moderate amount of oil has attained a greater importance as an oilseed in the recent years on account of its easy adaptability and resilience for cultivation in a wide variety of climatic conditions as well as its capability to give high yields compared to any other oilseed. 
 
Soyabean has become the largest producing oilseed, contributing for nearly 60% of total world oilseeds production. Soyabean is reported to be originated from China. Although, soyabean is a native of South Asia, majority of the world's soybean has been cultivated in the United States as well as in South American countries. In India, soyabean cultivation has picked up momentum during the past 15 years.
 
 
 
Economic Importance:
 
Soyabean is cultivated for its seeds, which are rich source of protein and oil. Protein content of the seed is about 40% and oil content is about 15-20%.
Oil: Soya oil recovery is about 17%
Meal: A bi-product, rich in protein and used extensively as a feed for livestock, poultry and fish.
 
 
 
Climate and Cultivation
Soyabean is a tropical season crop but can be cultivated in subtropical and temperate climates as well. Though, the plant is resistant to relatively extreme temperatures, optimum growth takes place between 10o C to 30o C. Soyabean is normally cultivated as a kharif crop in India. It comes up well within a rainfall of 600 mm to 1000 mm. The crop can be cultivated in most types of soil but thrives best in warm, fertile and clay land.
 
Calendar of operations world

 
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
United states
 
 
 
 
 
 
 
 
 
 
 
Brazil
 
 
 
 
 
 
 
 
 
 
 
 
Argentina
 
 
 
 
 
 
 
 
 
 
 
 
China
 
 
 
 
 
 
 
 

 

 
 
Planting 
 
 
Harvesting 

Crop operations of soyabean vary across major producing countries. Crop season in Brazil and Argentina is relatively longer starting from October -December and extends till May-June. But, the crop season in the US, China and India is shorter from April-May to October-November. This has apparently given an additional advantage for Brazil and Argentina to export during the lean seasons of other countries like India and China. 
 
 
Cultivation and seasons in India
 
Nearly 60% of acreage as well as production of soyabean in India comes from Madhya Pradesh while Maharashtra is in the second place contributing for about 30 %.
 
Calendar of operations

 
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Northern zone
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UP, Rajasthan, Bihar
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Central zone
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MP & Maharashtra
 
 
 
 
 
 
 
 
 
 
 
 
 
Southern zone
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Andhra Pradesh
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
World Scenario
 
North and south Americas together contribute for about 80% of soyabean production. Among all major soybean-producing countries, the US occupies the first place both in terms of area and production followed by Brazil and Argentina. China and India occupies the fourth and fifth places respectively.
 
 
 
Production in the US has declined marginally during the past two years. On the other hand, soyabean production in Brazil and Argentina has been increasing consistently during the past 10 years. Production in Brazil has doubled from 43.5 million tons in 2001-02 to 89 million tons in 2013-14.
 
Table 1: Soybean balance sheet for world (million tons)

 
Production
Consumption
Exports
End stocks
2009-10
260.4
237.7
91.4
62.2
2010-11
263.9
251.4
91.7
71.8
2011-12
239.2
257.0
92.3
55.1
2012-13
268.3
258.2
99.8
60.6
2013-14
286.8
270.9
109.3
72.3

Source: USDA
 
Soyabean consumption in the world increased steeply driven by the sharp rise in demand from china, India and South America countries. Consumption in China has increased manifold from 28 million tons in 2001-02 to nearly 80 million tons in 2013-14. Similarly, consumption in India also doubled from 5.3 million tons to 11.3 million tons during the corresponding period
 
 
Table 2: Top five producers, consumers and traders

Producers
Exporters
Importers
Consumers
United States
Brazil
China
China
Brazil
United States
European Union
United States
Argentina
Argentina
Mexico
Brazil
China
Paraguay
Japan
Argentina
India
Canada
Taiwan
European Union

Source: USDA
 
Export contribution from Brazil has been rising steadily during the past three years while the exports have been fluctuating highly with respect to all other major exporting countries.
 
Among major soyabean importers, China has reached the first place, with a 100 % rise in imports during the past decade.
 
 
Domestic Scenario
 
Soyabean is relatively a new oilseed crop introduced in India and its cultivation has picked up momentum in 1980s. Area under soyabean in the country was almost negligible at less than 0.5 million hectare until 1980. But, its cultivation has spread rather quickly recording an exceptional growth of about 20% per annum during 1981-82 to 1990-91.
 
 
Production has also registered equally impressive growth of 16% per annum in the same period, at a relatively low pace due to fluctuations in yields. The growth in area and production has continued to rise even in the 1990s but at a moderate growth of about 7% per annum. Nevertheless the growth has accelerated at about 13% per annum during the past 15 years. But soyabean production in India accounts for only 3 % of total production in the world.
 
Table 3: Domestic balance sheet of soyabean (million tons)

 
Open stocks
Production
Consumption
End stocks
2009-10
6.58
97
87.75
15.73
2010-11
15.73
98
108.5
5.05
2011-12
5.05
110
111.5
3.16
2012-13
3.16
115
113.5
3.91
2013-14
3.91
118
112.5
8.66

Source: USDA
 
 
State-wise Production
 
Production of soyabean is concentrated in three states Madhya Pradesh, Maharashtra and Rajasthan which  together account for about 95% of total soyabean production. Madhya Pradesh is the single largest producer of soyabean contributing for more than 50% of total output in the country. Maharashtra occupies the second place contributing for about 33% followed by Rajasthan accounting for 11% of total output in the country.
 
 
 
 
 
 
Major cultivated varieties
 

UP, Rajasthan, Bihar
 
Bragg, PK 262, PK 372, PK 414, Pusa 27, Pusa 40, SL 4, SL 96 Palm Soya
MP & Maharashtra
Bragg, Gaurav, MACS 571, MACS 124, MACS 450, PK 308, PK 472
Andhra Pradesh
 
PK 472, MACS 58, MACS 124, JS 335, MACS 201

 
Major markets
 
Spot markets
Indore, Ujjain, Dewas, Mandsore, Bhopal, Nagpur and Kota
 
 
Futures trading
International: Chicago Board of Trading (CBOT) is the largest soya futures market   Dalian Commodity Exchange, China
In India soya futures are traded in three forms, seed, oil and meal. Major exchanges that offer futures trading in soya complex include NBOT, NCDEX, MCX and NMCE.
 
 
External Trade
 
 
Major export destinations: NA
 
Major import sources: NA
 
 
Factors Influencing Prices
 
Carryover stocks: Leftover stocks from the previous year’s production after meeting the demand.
 
Expected demand: Average level of consumption and exports during the past few years
 
Crop acreage: Extent of area sown under the crop
 
Production: Estimated output based on the acreage and weather conditions and pest infestation etc.,
Imports and exports: In case of edible oils, the traders need to know the details of important sources and destinations of the external trade. Further, the traders have to monitor the crop status in the respective countries.
Government policies: Any change in government policy relating to the crops such as minimum support price (MSP)
Procurement: Direct procurement by the government agencies and storage in warehouses change in tariff and base prices of externally traded goods will have a direct impact on the respective commodity prices.
 
 
 
 
Soya Oil
 
Table 4: Trends in global demand and supply of soya oil (thousand tons)

 
Production
Exports
Consumption
Closing stocks
2009-10
38790
9160
38211
3369
2010-11
41297
9643
40710
3813
2011-12
42617
8467
42042
3877
2012-13
42783
9322
42397
3371
2013-14
44604
9324
44209
3253

Source: USDA
 
 
 
Table 5: Trends in domestic demand and supply of soya oil (thousand tons)

 
Production
Imports
Consumption
Closing stocks
2009-10
1320
1598
2760
257
2010-11
1675
945
2640
237
2011-12
1710
1174
2750
361
2012-13
1690
1086
2910
227
2013-14
1688
1230
2990
154

Source: USDA
 
 
Major markets
 
Spot markets:
Indore, Mumbai and Nagpur
 
Futures Markets:
NCDEX
 
 
External Trade
  
Major Export destinations: NA
 
Major Import Sources: Argentina and Brazil
 
 
Soya Meal
 
Table 6: Trends in global demand and supply of soya meal (thousand tons)

 
Production
Exports
Consumption
Closing stocks
2009-10
164947
55606
160978
6629
2010-11
174684
58549
171022
8650
2011-12
180471
58270
177767
10177
2012-13
180513
57767
176964
9777
2013-14
188386
61266
184118
10804

Source: USDA
 
 
 
 
Table 7: Trends in domestic demand and supply of soya meal (thousand tons)

 
Production
Exports
Consumption
Closing stocks
2009-10
5910
3117
2570
313
2010-11
7520
4800
2901
140
2011-12
7680
4391
3331
105
2012-13
7680
4354
3363
75
2013-14
7520
3550
3936
116

Source: USDA
 
 
Major Markets
 
Spot markets:
Indore, Latur, Nagpur and Jalna
 
Futures Markets:
NCDEX
 
 
External Trade
 
 
Major Export destinations: Iran, France, Europe and Indonesia
 
Major Import Sources: NA
 

 

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