Rains give India soybean new life, more needed

Aug 31 2009 3:13PM

NEW DELHI, Aug 31 (Reuters) - India's soybean-growing central region has received heavy showers in the past few days, giving a new lease of life to the crop but more rains will be needed in three weeks to limit the damage.

"The crop needs one more monsoon spell to ensure the output does not fall further," said Umesh Bothra, a trader at Indore in the soybean hub.

Traders and industry officials expect soybean output in India, the world's top edible oil buyer, may fall 9-19 percent this year due to failed monsoon over the producing belt. See

The soybean area was 9.49 million hectare until Aug. 28, marginally lower than 9.52 million hectare a year ago.

Another Indore trader said the dry phase could lead to a 10 percent drop in output, but rains in coming weeks could ensure the output does not fall more.

India produced 9.9 million tonnes of soybean in 2008.

"Last five days showers have given a new lease of life to the late-sown varieties," Bothra said.

Traders said the late-sown varieties have entered flowering stage, and can withstand a break for at least two more weeks as the recent rains have improved soil moisture level.

"Dry phase beyond that would reduce the bean weight," Bothra said.

The weather office has forecast rains over the producing belt in the next 24 hours.

Worries over tight supplies and farmers strike in Argentina, a major soy exporter, pushed U.S. futures up last week.

On Friday, the benchmark September soybean contract on the Chicago Board of Trade ended at $11.35- per bushel, up 21- cents, while new-crop November contract closed at $10.11, up 15 cents.