Soyabean futures jump on hopes of lower output

SURESH P. IYENGAR, THE HINDU BUSINESS LINE
MUMBAI, JUNE 29:
Soyabean futures on the National Commodities and Derivatives Exchange Ltd (NCDEX) gained 1.6 per cent to Rs 3,928 per quintal on expectations of lower output in this kharif season.

The below normal rainfall and drop in area under soyabean cultivation may impact production this year. Besides, the dry weather prevailing in the US may hit the crop yield.

Sowing of kharif oilseeds has begun, however, the pace is much slower due to weak monsoon progress.

Area covered under oilseeds is about 3.13 lakh hectares, down 32 per cent as of June 21. Area covered under soyabean stood at 13,600 hectares compared with 50,000 ha last year.

The minimum support price for soyabean was hiked by 30 per cent to Rs 2,200 a quintal in 2012-13. Higher MSP may lead to increase in acreage, but the crop output will depend on the progress of monsoon.

As per the Solvent Extractors' Association of India, the domestic export of oil meal in May increased 8.60 per cent to 351,791 tonnes from 323,907 tonnes logged in the same period last year.

However, the total export of oil meal between April-May was down 10 per cent to 752,218 tonnes.

CBOT Soyabean settled 0.34 per cent lower on Thursday on reports that the acreage has risen by 2.2 per cent in the US. The US Department of Agriculture reduced the crop condition ratings for corn and soyabean to the lowest since 1988.