India soy futures erase losses on short-covering

Indian soy futures erased early losses and rose on Monday (May 25) on short-covering, after losing 7 percent last week, but early arrival of monsoon rains weighed, analysts said.

Analysts added that a recovery in the futures market may also trigger spot buying later in the day.

July soy contract on the National Commodity and Derivatives Exchange (NCDEX) rose 1.43 percent to Rs2,588 per 100 kilogrammes.

July soyoil contract rose 0.61 percent to Rs488.35 per 10 kilogrammes.

Annual monsoon rains, vital for crops like soy and rice, hit the country's southern coast more than a week in advance on Saturday (May 23), raising hopes of early sowing of the kharif crops and faster supplies in the spot market.

US$1 = Rs47.334 (May 25)