December 7, 2010

Indian soy likely to trade up on better local demand

Positive undertone remains for India's soy on improved buying support from the domestic market and optimistic cues from the international market.

Corn and wheat sentiments are also positive in global markets. Argentina and Brazil have still some weather concern. Export demand in the international market is still supportive to the prices. Thus, overall sentiments are largely positive for the market.

So far as Indian market is concerned it is likely to stay positive for some more time. As per the industry sources, the soy production is expected to remain at 93.5 lakh tonnes which is nearly 10% more than the last year's output.

Overall, Kharif oilseeds crop output is expected to remain nearly 262.85 lakh tonnes compared with 235 lakh tonnes last year which is nearly 12% more than the last year.

So far as the prices movement is concerned, it appears that robust demand will not allow prices so see any significant downside despite the increase in production.