October 25, 2010

Indian soy likely to gain on strong export demand

Positive trend continues in India's soy market and during the past three days prices have improved significantly due to fresh buying support.

Earlier prices fell consecutively for the four days due to profit booking. In fact, international market sentiments are positive on strong export demand and weather concern in Brazil where planting of soy is in progress. Market is currently ignoring the harvesting pressure and traders are bullish due to international market support.

In India, despite arrival in the mandis, the increased demand keeps market sentiments firm. We will have to witness a volatile trade in near future. Brazilian farmers have planted 10% of the expected total soy area as of October 15 as per the agricultural consultancy Celeres.