Soyabean futures prices may remain weak over the next few days on higher sowing acreage estimates for the current season on account of better realisation to farmers as compared to other crops. Lower export demand of soya meal from global livestock industry and weakness in overseas market would also influence the market, sources said.
During the current month, NCDEX Soyabean July 2009 futures fell nearly 9% to trade at Rs 2,377 per quintal on Tuesday on report of higher sowing acreage.
Domestic area under soybean is expected to be higher at 1.14 lakh hectares over 1.03 lakh hectare in the corresponding period a year ago, as per Agriculture Ministry?s Crop Weather Watch Report.
The planting time for soybean under normal monsoon conditions is June 20 to July 5, after which yield levels are affected.
If monsoon is delayed and planting is to be made after July 5, following strategy may be adopted to minimize the yield reduction, according to latest reports released by ICAR.
Under late sown conditions soybean can be planted from July 5 to July 20.
NCDEX Soyabean futures on Wednesday gained some ground and traded higher nearly Rs 80 to quote at Rs 2,455 per quintal over previous day on stray spot demand and some short covering, analyst said.
Overall weak sentiments were prevailed across major spot markets of soyabean last week on account of lower export demand for soya meal. Arrivals of soyabean in the major mandis of Madhay Pradesh were higher at 30,000 bags.
?Prices are expected to move northward on lower stock of soybean and monsoon rains is weak at the start of soybean planting season, which is delaying planting in major producing states but, for long term, they may remain weak owing to higher sowing acreage estimates,? analyst with Angel Commodities said.
Globally soybean production is estimated higher as compared to last year may provide support to bears.