September soybean touches new low on spot, sowing

Jul 27 2009 3:04PM

MUMBAI, July 27 (Reuters) - Indian soybean futures touched new lows on Monday afternoon tracking weakness in spot market, and on good oilseeds sowing in the current season, raising hopes of better supplies later in the year, analysts said.

A drop in Malaysian palm oil also weighed on the markets, they added.

At 2:23 p.m, the September soybean contract on the National Commodity and Derivatives Exchange fell 2.23 percent to 2,211 rupees per 100 kg, after hitting a new low of 2,196 rupees.

The September soyoil futures was down 0.5 percent to 445.5 rupees per 10 kg.

Soybean prices in the spot market in central city of Indore fell 1.89 percent to 21,000 rupees per tonne, while soyoil prices fell 0.93 percent to 42,700 rupees per tonne.

The benchmark October palm oil futures on Bursa Malaysia Derivatives Exchange was at 2,100 ringgit a tonne, down 1.04 percent at 2:26 p.m.

Soybean is crushed to produce soyoil, which is a substitute of palmoil. Their prices often move in tandem.

Sowing of soybean, the main oilseed of India, picked up in last two weeks and total area has almost touched previous year's acreage.

In Madhya Pradesh, India's largest producer, area has crossed 5 million hectares, same as last year, after good rains in the state, a senior government official said last week.