July 15, 2010

 

India's soy futures up amid less rainfall in Madhya Pradesh

Soy futures gain more than INR30 (US$0.64) per quintal in last two days due to deficit rainfall in major parts of Madhya Pradesh, India.

 

The total soy sowing acreage in Madhya Pradesh was down 30% to 14.30 lakh hectares so far in the current year due to deficit rainfall of around 45-50% in major sowing districts of Madhya Pradesh such as Dewas , Indore and Rewa, as per latest release by Ministry of Agriculture. The total sowing soy acreage at all India level gained almost 8% to reach 34.6 lakh hectares, however.

 

CBOT soy prices were closed at its highest level since May 4 on Wednesday (July 14). August soy regained to close at US$9.97 3/4. August meal was up US$1.30 to close at US$298.30. August soyoil was up nine points to close at US$0.3811. New-crop November soy went up to US$9.62.

 

China released trade data for June over the weekend. Among the statistics was news that China imported 6.2 million tonnes of beans in June. Chinese sources also released estimates for imports for July-September. China's total soy imports for its 2009/10 crop year will total between 49 million tonnes and 50 million tonnes. That would be up from the current forecast by USDA at 48 million tonnes. It is also more than 10 million tonnes greater than what USDA was forecasting last year at this time.

 

Consequently, the future prices of NCDEX August contract swelled by INR30 (US$0.64) per quintal in last two trading days and were quoting at INR1960 (US$42) per quintal.