Indian soy futures up on short-covering

Indian soy futures rose on Monday (July 13) on short-covering triggered by an across-the-board rise in agri-commodities as lower rains raised concern of supply shortage, but good sowing after rains in the last ten days weighed.

August soy contract on the National Commodity and Derivatives Exchange (NCDEX) was up 2.22 percent at Rs2,307 per 100 kilogrammes. The futures fell over 13 percent in 12 sessions ending last week.

The August soyoil prices was up 1.18 percent at Rs449.6 per 10 kg.

Analysts said the agri-commodities are rallying on expectation of supply crunch due less than normal sowing following deficient rains, so far this year.

Indian monsoon rains were more than 35*percent below normal in June 1 to July 8 period, the weather office said last week.

Sowing of oilseeds in the current season crossed 5.6 million hectares last week, a rise of 58 percent from the previous week's figure.

Large-scale sowing is still on in most of the growing states and is likely to ease from next week, traders said.

US$1 = Rs49.354 (July 13)