Indian soy touches new lows as US crop outlook weighs

Indian soy and soyoil futures hit new lows on Monday (September 14) morning, due to expectations of a record US crop, the largest producer, and on weak Malaysian palm weighed on the markets, analysts said.

However, soyoil recovered opening losses and edged up on expectation of spot demand ahead of festivals later this month, they added.

The October soy contract NSBV9 on the National Commodity and Derivatives Exchange was down 0.15 percent at 1,957 rupees per 100 kg at 10:29 a.m. The futures had touched a new low at 1,940 early in the day.

The benchmark November palm oil futures KPOc3 on Bursa Malaysia Derivatives Exchange was at 2,103 ringgit a tonne, down 1.96 percent at 10:00 a.m.

Weather conditions improved markedly in US and India raising expectations of better supplies.

US Department of Agriculture (USDA) said Friday (September 11) it expected 2009 US soy production at a record 3.245 billion bushels, a record.

Output in India is likely to be better than previous year after September rains pushed up output estimates.