Soybean down on overseas markets, supplies

Written by Reuters | Mumbai, September 30: | Updated: Sep 30 2008, 19:12pm hrs
Soybean futures extended losses for a third day to hit new lows on Tuesday on weakness in the overseas markets and expectations of good supplies at home in the coming weeks, analysts said.

Overseas markets fell after crude oil prices tumbled on worries that an economic slowdown will curb demand.

At 1:40 p.m., soybean November futures fell 1.07 per cent to 1,852 rupees per 100 kg. It earlier hit a new low of 1,821 rupees.

November rapeseed was almost flat at 583.50 rupees per 20 kg.

The palm oil December futures on Bursa Malaysia Derivatives Exchange were down 4 per cent to 2,040 ringgit a tonne at 1:41 p.m. It earlier hit a 18-month low at 1,988 ringgit.

Soybean and rapeseed are crushed to produce edible oils, which compete with palm oil, and their prices move in tandem.

Soybean November futures on Chicago Board of Trade fell 1.65 per cent to $10.76 a bushel during electronic trade on Tuesday.

India is likely to produce a record soybean crop of about 10-12 million tonnes, crushers, traders and analysts said at a industry conference.

Leading industry analyst Dorab Mistry, in a conference on Saturday, said Indian crushers may face a difficult time in the year ending September 2009 as farmers demand better prices, while soymeal buyers bargain for a discount.

Soymeal is the main byproduct derived from soybean crushing and constitutes about 82-83 per cent of the seed weight.