India's soyabean crop has gained from good monsoon rains in the past week, but traders are going slow on soyameal export deals as the crop needs rainfall for another week to ensure a good harvest, traders said on Wednesday. "Soyabean has entered the podding stage and needs sustained good soil moisture for nourishment," said a trade official who recently toured growing fields of the central state.
India's main summer-sown oilseed crop was at risk after a three-week dry patch since the end of July but heavy showers in central India, the main producing region, rejuvenated the crop. India's weather office has forecast showers at many places over the soyabean producing central region in the next two days, but rainfall is expected to decrease subsequently, making traders cautious.
"No fresh export deals are happening now as all are keeping a close eye on the crop maturity," said an Indore-based trader. On Wednesday, soyameal prices for November shipment at a port in western India had declined to $390-395 a tonne from a range of $405-425 per tonne in early August. India has already started its export marketing season this year and struck export deals of about 200,000 tonnes export deals at $405-$425 per tonne for shipment in November and December.
Export deals slowed down in recent weeks as dry weather had set in when the crop was at the blooming stage, making it more vulnerable. An Indore-based trader said well-distributed rains were needed in the next week to 10 days to ensure proper growth during the podding stage. India's soyabean crop area up to August 12 was 1.1 percent higher at 9.4 million hectare compared with last year, and 20 percent higher than the average of 7.8 million hectares in previous years.
In Madhya Pradesh, the main producing state, the area under soyabean exceeded its target by 3 percent to 5.1 million hectares. This year's monsoon had arrived late over the soyabean growing region in central India, but revived during early July helping the sowing of the oilseed crop.
India produced 17.9 million tonnes of summer-sown oilseed crops in 2008, with soyabeans contributing 55 percent of the total output. Monsoon rains have been more than a quarter short of average this year, hitting farm activities across India. Farm Minister Sharad Pawar said earlier on Wednesday that India's oilseed, cane and sugar output was likely to fall this year.
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