Weak demand prevail in Indian soy futures

India's July soy futures ended lower on account on weak overseas market and ahead on rain monsoon.

However, prices could not sustained higher levels due to weak fundamentals of oilseeds and anticipation of better monsoon.

The USDA's weekly export inspections for soy were 5.718 million bushels, up from 4.423 last week. Inspections need to average 8.9 million bushels each week to reach the USDA's export projection for 2009-10.

Spread between June and July contract is Rs-39.50 against previous day of Rs-39.00 per 100 Kg.

Prices closed below its 10 Day and its 20 Day EMA, which indicates bearish market sentiments.

Soy prices are expected to trade lower on ahead of rain monsoon and better carry over stock this year as compared to last year and lower demand from solvent extractors.

However, in the long term perspective, soy prices are expected to trade lower on higher global soy production estimate this year as compared to last year. Decline in domestic oil meal export this year as compared to last year are also in favour of bears.