CBOT soy futures fall as monsoon begins

Soy futures for July delivery at NCDEX ended lower as the entry of monsoon in producing region may boost output.

Soy futures at CBOT witnessed short covering on profit booking despite higher output expectation in US. According to the Indian Meteorological Department (IMD), the southwest monsoon has entered south Gujarat, south Madhya Pradesh.

Conditions are favourable for further progress of monsoon into more parts of Madhya Pradesh and other areas. The higher global output and carry stock in Indian market may keep soy prices in downtrend and we recommend selling on rise.

Refined soyoil prices traded lower on week oil prices and prices at NCDEX fell to near Rs 442 (US$9.57). We expect soyoil prices to trade firm on higher demand.