December 6, 2010

Indian soy futures zoom on overseas demand

Indian soy futures traded on a positive note on Saturday (Dec 4) due to strong buying interest supported by bullish fundamental factors.

Indian markets took support from strong overseas market. CBOT soy futures ended higher on Friday on bullish demand outlook. Expectation on robust export demand for soy from China and continued weather concern for South American crops gave underlying support to the market.

On the domestic front, significant rises in soymeal prices on local and export demand lent support to the soy market. Indian traders bought futures anticipating a revival in export demands for soymeal.

The soy futures on Indian exchanges are expected to extend its uptrend on follow-through buying supported by bullish fundamental factors. Emerging local and export demand for soymeal is likely to support the soy market.

The crush margin is maintaining its positive trend, which may attract crushers to procure more beans from the market. Traders and investors are likely to buy futures anticipating robust meal export demand and will create more buying interest for the beans in the near future.

Spot markets are witnessing steady arrivals and traders are actively buying in the cash markets. On the global front, CBOT soy futures are likely to trade higher on supply demand mismatches.

Bullish soy export demand from China is likely to support the prices. The December month World Agriculture Supply Demand Estimates report scheduled for release on Friday (Dec 10) will give further direction to the market.