There was some great news for the people involved with soy products as the prices firmed up not only for soya bean but also for soy oil. The prices firmed up on some supportive fundamentals as the nation is expecting a drop in production. While the soyabean prices improved by nearly 2% the soyoil prices fared better gaining by nearly 3%. The recovery that occurred in soy products has been expected during last week itself as reports came out with regard to the same. Madhya Pradesh is likely to suffer a severe drop in production this year due to delayed rains and drought like conditions in the major growing areas.
The delayed rains after the sowing period in most of the areas hampered the growth. Normal to excess rainfall was observed in July while the rain gods played truant during month of August is sure to result in a severe drop in production.
The rubber futures in the domestic exchanges are back in the speculative screen as the future prices moved away from the spot markets and closed strong threatening to break the psychological 6500 barrier. In the recent past both the prices were moving up or down in tandem and the present divergence was enough to put a doubt or two in the minds of the investors due to the recent outcomes in the futures markets. However the improving international prices left those doubts unchallenged at least for the time being.
Asian rubber futures settled higher on Monday, tracking crude oil futures and gains in Tokyo Commodity Exchange rubber contracts. Tocom rubber futures settled higher, and took all the other global market with it. While the yen continued to weaken against the dollar making the yen-denominated futures cheaper in dollar terms, boosting demand. However, the benchmark April RSS3 contract didnt challenge technical resistance at Y195 a kilogram, which held all of last week, settling Y1.4 higher at Y193.2/kg. Spices gave a commendable performance with chilli and pepper leading the rally while cardamom and jeera fell by the way side.
Courtesy: Geojit Commodities Ltd