India August soy futures up on short-covering, overseas gains

Indian August soy futures edged up on Wednesday (July1) morning on short-covering, triggered by firmness in related markets overseas, analysts said.

Malaysian palm oil futures and soy futures on Chicago Board of Trade (CBOT) rose after the United States Department of Agriculture (USDA) estimated soy acreage at a record 77.5 million acres, still lower than trade estimates.

At 10:18 p.m, the August soy contract NSBQ9 on the National Commodity and Derivatives Exchange was up 0.36 percent at 2,519 rupees per 100 kg after falling more than 2.5 percent in last three sessions.

The soyoil August contract NSOQ9 was up 0.17 percent to 484.75 rupees per 10 kg.

At 10:00 a.m, the benchmark September palm oil futures contract KPOc3 on Bursa Malaysia Derivatives Exchange edged up 0.76 percent at 2,247 ringgit a tonne.

New crop November soy futures SX9 was up 1.22 percent at $9.93 a bushel on CBOT during electronic trade on Wednesday.

Local soy prices are often influenced by Malaysian palm, which is used as a substitute for soyoil, made by crushing the oilseed and by US soy.

But, gains were limited on expectation large-scale soybean sowing may soon begin after monsoon rains hit top producing states - Maharashtra and Madhya Pradesh.

Soy cultivation has been delayed by almost a fortnight in Maharashtra, and by at least one week in Madhya Pradesh, the largest producer, due to poor rains.