July 16, 2009

India soy, soyoil futures down as sowing peaks

Indian soy and soyoil futures fell on Thursday (July 16) after rising in the previous session on large-scale sowing over the week that pushed up hopes of steady acreage compared to last year, analysts said.

Sowing has peaked in key growing states of Madhya Pradesh and Maharashtra. Sowing of oilseeds in the current season crossed 5.6 million hectare last week, a rise of 58 percent from the previous week's figure.

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

August soy contract on the National Commodity and Derivatives Exchange was down 0.74 percent to Rs2,286 per 100 kilogrammes, while August soyoil futures was down 0.56 percent to Rs457.8 per 10 kilogrammes.

Last year soy acreage is estimated to have crossed 9.6 million hectares. Higher acreage may push up supplies and subdue prices.

US$1 = Rs48.783 (July 16)