May 3, 2012

India's soy price up 1.7% on rising soymeal demand

India's soy price for contracts in National Commodity and Derivatives Exchange (NCDEX) rose by 1.7% due to rising soymeal demand from Iran and Japan coupled with lower arrivals of soy in the domestic markets.

According to reports the soymeal purchase of Iran and Japan from India is likely to touch 275,000 tonnes and 2.1 million tonnes respectively. While the arrivals of soy in the domestic mandis in India have been lower for the past three weeks. This has raised the price of the commodity in India's commodity exchange NCDEX. According to market reports in NCDEX the price of soy for May delivery during the last four months (January 2, 2012-April 30, 2012 ) rose 39.35% to INR3,624.50 (US$68.6) from INR2,601 (US$49) per qtl. Global soy prices are likely to gain momentum as China plans to buy more soy in the midst of lower production prospects in Latin American nations Like Argentina and Brazil. This is situation is creating huge opportunities for US soy.

China is expected to import at least 2.3 million tonnes of soy during June-August 2012. In Inter Continental Exchange (ICE) the soy for May delivery traded down US$0.09 4/8 to US$14.88 2/8 per bushel on Wednesday. And in India s NCDEX the commodity for May delivery traded up 1.83% to INR3,691 (US$70) per qtl on May 2 at 14:45 IST.