The trade body has alleged that the current increase in soybean the prices are due to speculative trading on the NCDEX. “The soybean futures contract on NCDEX has been completely taken over by speculators. The contract is no longer a price discovery and hedging tool. Soybean processing and even the aquaculture / poultry industry, which uses the final product, the flour, suffering greatly from excessive speculation, “he said. SOUP.
To back up its claim, SOPA said: “In the last seven trading sessions, the soybean futures contract on NCDEX has risen 21.77% and the upper circuit had to be applied 4 times.”
According to SOPA, although oil supply and demand in the year 2020-21 were slightly adjusted, it does not support the type of price increase observed in recent months. There is no physical stock in NCDEX warehouses, which is further fueling speculation.
“To reduce speculation, we request that the margin money be increased from the current 25% to 50% for lean season contracts and that the lean season circuit limit be lowered to 2% per day,” said the SOPA in a statement.
BOX: Closing prices of Indore soybean futures: