July 10, 2012

 

Indian soy futures slide to average

 

 

The soy futures of India lessened following reaching its highest level by far on Friday (July 6) on profit-taking.

 

However, adverse weather, a rise in soymeal exports and weak rupee limited the downside.

 

Soyoil edged lower tracking Malaysian palm oil, while rapeseed softened in line with soy.

 

"Concern over soybean production in the United States is keeping traders' interest intact in soy. In India also sowing is not progressing as per expectations," said Prasoon Mathur, an analyst with Religare Commodities.

 

Malaysian palm oil futures were down .98% at 3,133 ringgit per tonne by 0952 GMT, while US soy was down 0.95% at US$16.08 per bushel, after jumping 3.5% in the previous session.

 

The USDA, in its weekly report, on Monday said 45% of the soy crop in the US is in good-to-excellent condition, compared with 53% a week ago.

 

The August soy contract on India's National Commodity and Derivatives Exchange eased 0.24% at INR4,170 per (US$74.63) 100 kg, after hitting a record high of INR4,258 (US$76.21) earlier.

 

Madhya Pradesh and Maharashtra are the top two soy producers in the country accounting for more than 85% of the total production. Both states have so far received sharply lower rainfall than average.

 

India's soy acreage is likely to rise by 7% in 2012/13 as record high prices for the oilseed prompt farmers to plant more, an industry official had said last month.

 

The August soyoil contract edged down 0.26% to INR781.1 (US$13.98) per 10 kg, while rapeseed fell 0.39% to INR4,083 (US$73.07) per 100 kg.

 

India's soymeal exports rose to 180,987 tonnes in June, from 117,600 tonnes during the same period a year ago, the Solvent Extractors' Association of India said in a statement on Friday.

 

A weak rupee, which makes edible oil imports expensive and at the same time raises returns of Indian oilmeal exporters, supported the upside. Rupee eased 1% on Friday.

 

In the Indore spot market in Madhya Pradesh, soyoil was up INR8.4 (US$0.15) at INR766.5 (US$13.72) per 10 kg, while soy jumped INR71 (US$1.27) to INR4,155 (US$74.36) per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed rose by INR11 (US$0.20) to INR3,992 (US$71.45) per 100 kg.