Indore:
The Soyabean Processors Association (SOPA) has urged National Commodity and Derivatives Exchange (NCDEX) to check what they termed 'unprecedented' speculation in soya future contracts.
SOPA chairman Dr Davish Jain has written to NCDEX managing director Arun Raste, in this regard .
Jain has stated that soyabean futures contract on NCDEX has been completely taken over by the speculators. The contract is no longer a price discovery and hedging tool. As a result, not only soya processing but also the aquaculture, poultry industry, which uses the end product i.e. soybean meal, is suffering badly because of excessive speculation. Jain said that in the last
seven trading sessions, soyabean futures contract on NCDEX has gone up by 21.77% and upper circuit had to be applied 4 times. Although the S&D for oil year 2020-21 is slightly tight, it does not support the kind of price rise seen in the last few months. There is no physical
stock in NCDEX warehouses which is further fuelling the speculation.
Thus, NCDEX must check at the heavy speculation of the soya future contracts.
This heavy speculations may lead to a hike in the spot prices of the soyabean oils, which are already very high compared to last year.
