January 19, 2010

Indian soy futures rise on spot demand, bargain-buying

India's soy futures were trading higher on Monday (Jan 18) afternoon after snapping a three-session losing streak on improved spot demand and bargain-hunting, analysts said.

"They are trading higher mainly because of short-covering. Export demand for meal is still weak," said an analyst at JRG Wealth Management.

The February soy contract NSBG0 on the National Commodity and Derivatives Exchange was up 0.77% to Rs2,214 (US$48.40) per 100 kg.

The contract had shed over 8% this month tracking weak overseas markets and sluggish meal exports, analysts said.

In Nagpur, a major spot market in western Maharashtra state, price rose by Rs16 (US$0.34) to Rs2,233 (US$48.82).

Malaysian crude palm oil futures lost as much as 2.2% to hit an eight-week intraday low by midday on Monday as weaker crude oil and soy prices continued to drag down the market, traders said.
 

Indian millers say since oil and meal do not command good prices, processing soy is economically unviable, leading to sluggish demand for the oilseed in the spot market.

India's oilmeal exports slumped 44% to 395,663 tonnes in December from 708,631 tonnes a year earlier, a leading trade body said on January 6.