November 9, 2010

Indian soy gains on short covering

India's soy futures market displayed a bullish trend on Saturday (Nov 6) by borrowing strength from the strong overseas soy market.

CBOT soy futures ended higher on Friday (Nov 5) due to tight supply conditions and robust export demand.

On the domestic front, trading activity was subdued on Saturday (Nov 6) as local traders were celebrating Deepavali. The soy futures are projected to trade on a positive note on Monday (Nov 8) on fresh buying supported by strong overseas market.

Robust oilmeal export demand from India is also another bullish factor for the market. According to data released by the Solvent Extractors' Association of India, soymeal export from India rose 80% on-year to 395,510 tonnes in October.

During April-October, soymeal shipment rose 44% on-year to 1,248,387 tonnes. Since Indian soymeal prices are on par with other origins and active harvesting is going on, a further rise in meal exports is expected in the months ahead.