February 4, 2009

India soy futures erased afternoon gains to end almost steady on weakness in the spot market and on expectations of rains in Argentina, a leading producer and exporter, analysts and a trader said.

The markets had risen in afternoon trade on short-covering, after it had fallen more than 9.4 percent in the last five sessions.

Soy prices in the spot market in Indore fell 2.27 percent to Rp 21,500 (US$444.24).

The soy market is keenly watching weather conditions in Argentina, analysts said.

The output in Argentina, which harvests soy in April to May, have been adversely affected due to drought in the growing regions.

Precipitation in farming areas of Argentina was not enough to give relief to drought-stricken crops on Monday (Feb 2), but more light rains was expected, a local weather expert said.