Overseas demand pushes Indian soy prices up

Indian soy prices were up in the NCDEX future market on account of strong overseas demand; while strong demand for Chinese soy is also moving prices up.

Soy June contract opened at Rs1,964 per 100kg on NCDEX this morning, higher by Rs.4.50 as compare to yesterday's close price. It made a high at 1973 and a low at 1964 during the trading session on Thursday.

"Technically, soy is expected to move up for next few days, one can make buy position around 1970-80 with a stop-loss of 1950 and can expect above 2000 within a few days," said analysts.

Analysts added that soy is strong due to strong overseas and local demand fundamentally, and arrival of soy is also low as compared to expectations.

Meanwhile, the soy acreage in India could fall by about 5% to about nine million hectares in the coming kharif season due to competition from other crops and expectation of lower realisation by farmers, an industry body said.

Earlier reports also showed that a 50% dip in India's soymeal exports in April, to Rs95.99 crore (US$20.85 million) compared to the same month last year due to slow pace in crushing and fewer arrivals of soy on the market.