October 18, 2010
Global soy prices may fall on profit booking
Soy prices marginally fell worldwide due to profit booking as during the past few days, prices rose significantly on improved international market sentiments.
On such higher levels, it was difficult to dare to buy as most of the traders are waiting for some correction. Market will continue to add some risk premium to the prices till the sowing process is complete in the Brazil and Argentina. In Brazil, approximately 3% area under soy is sown as compared with 7% same period last year.
In US, 67% of soy crop is harvested versus the five years average of 48%. This may bring some pressure on prices. In India, there are reports of fewer yields in the parts of Madhya Pradesh. If there is significant loss to the crop in these parts then it may act as a long term bullish factor for the Indian market.