Indian soy futures seen bearish on weaker demand

India's soy May contract is expected to go down on expectation of higher stocks and low demand in the market.

Weak fundamental factors like low exports and expectation of a large South American crop are also capping any price rise. Also, the demand from the China (world's largest importer) has been declining, which may also cause the fall in prices.

Soy May contract opened at Rs1,980 (US$44.43) per quintal. The contract made a high at Rs1,993 (US$44.72) a quintal and a low at Rs1,979 (US$44.40) during the trading session. Volume recorded was 7,520 tonnes till Thursday (April 15).

"Technically and fundamentally, soy is expected to move down, one can make short position for next couple of days, 14 days RSI is at Rs47.80 (US$1.07) and is moving downward," analysts said.