February 11, 2009

India soy and soyoil futures ended higher on Tuesday (Feb 10) supported by gains in overseas markets and firm spot demand, analysts said.

US soy for March delivery traded higher, fuelled by a drought that was affecting the crop in Argentina, the world's third largest exporter.

Bonanza Commodities analyst Vibhu Ratandhara said soy would see some pressure on the upside due to lack of demand for soymeal and other edible oils.

Ratandhara added traders would also eye the weather conditions in Argentina for further cues.

The analyst said if soy breaches the important support of Rp2,360, then prices are expected to come down to Rp2,340 to Rp2,310.

Sharekhan Commodities Ltd analyst Mehul Agrawal said crop prospects in Argentina still looks bleak which is supporting the prices.

Spot prices in Nagpur, a major market in the western state of Maharashtra, the country's second-largest soy producer, rose 0.7 percent to Rp453.

US$1 = Rp48.89 (Feb 11)