June 15, 2009

Indian soy futures ended up on Friday (June 12) bolstered by a spike in spot demand and a lull in monsoon progress, which may affect soy sowing, analysts said.

Soyoil futures ended down tracking weakness in Malaysian palm oil market, but firm spot limited the losses.

Soy price in spot market in Indore rose 2.52 percent to Rs24,400 per tonne, while soyoil prices rose 0.65 percent to Rs46,200 per tonne.

Monsoon, crucial for soy sowing, is expected to remain subdued in coming three to four days, the weather office said on Friday (June 12) afternoon. Subdued progress of the monsoon may adversely impact sowing.

Earlier this week, India Meteorological Department said annual monsoon rains are not likely to revive during next one week.

However, expectations of higher acreage limited the gains, analysts said.

Experts said India's soy acreage may rise for a seventh year in a row to touch 10 million hectares this sowing season on better returns than most crops.

Analysts said that expectation of a rise in soy acreage in the current sowing season also weighed on the market.

US$1 = Rs47.830 (June 15)