Jun 26 2009 3:01PM
MUMBAI, June 26 (Reuters) - Indian soybean futures rose for a fourth consecutive day on Friday on firm spot demand after the government this week lowered its monsoon forecast to below normal, analysts said.
At 2:53 p.m, the August soybean contract on the National Commodity and Derivatives Exchange was up 0.43 percent at 2,574 rupees per 100 kg, extending its over 4.1 percent gain in the previous three sessions.
August rapeseed futures rose 0.29 percent to 543.2 rupees per 20 kg.
Soybean prices in the spot market in Nagpur in Maharashtra, country's second largest soybean producer, rose 1.94 percent to 23,600 rupees per tonne.
Earth Sciences Minister Prithviraj Chavan said on Wednesday that the 2009 monsoon rainfall would be 93 percent of the long-term average, lower than an earlier forecast of 96 percent. See
Spot traders, anticipating a supply shortfall because of the rains, are stocking up on oilseeds, dealers said.
However, some commodity traders are taking short positions in the new crop October futures after the latest weather department update, where it forecast that the key soybean producing regions will receive rainfall by July 1.
"Normally sowing is completed by first week of July...if monsoon comes by July 1 we will be able to complete sowing with a slight delay, which will not impact the crop," D.R. Kalra, executive director of the Soybean Processors Association of India, said.
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