October 4, 2008

India's soy prices hurt on weak global sentiments, higher estimates

India's November soy prices closed lower due to weak sentiments in the global market and higher production estimates for soy.

The lower demand for soymeal from the poultry industry also provided support to bears in the market.

In the 1st Advance Estimates of Production of Food grains, Oilseeds and Other Commercial Crops during 2008-09 by India's Ministry Of Agriculture, the output of soy is estimated at 9.94 million tonnes compared to 7.48 million tonnes in the previous year.

Soy futures are expected to trade weak in the coming week as fresh arrivals of the new crop would pick up along with less moisture content.

Prices at the National Commodities and Derivatives Exchange (NCDEX) closed lower at INR1825.00 per qtl on Wednesday (October 1), from its high of the day INR1875.00 and touched a low of INR1820.

Prices are expected to trade lower on account of higher sowing acreage of soy amidst favourable weather in major growing areas and higher production estimates this year as compared to previous year.