Soyabean Gains After USDA Reported that the Condition of Crops Deteriorated – Investing.com India

Soyabean Gains After USDA Reported that the Condition of Crops Deteriorated – Investing.com India

yesterday settled up by 4.91% at 9553 after the U.S. Department of Agriculture (USDA) reported that the condition of crops unexpectedly deteriorated last week. The soybean crop was rated 58% good-to-excellent, down 2 percentage points from a week earlier, and behind market forecasts. Hot, dry weather in the U.S. Midwest had raised concerns about the outlook for crops in the key growing region for soybeans. Support also seen as the delayed monsoon and the planting activity of soybean is adversely affected due to deficient rains in central India, speculation is high that there could be of drop-in sowing to the tune of 10-12% expected in the market. Rainfall was fairly poor in many parts in the initial weeks of July, agriculturally the most critical month. More than the deficiency, this year's uneven rain has been a cause of concern, agriculturally and climate-wise.  
 
Support is also seen amid the tightening inventory situation in the country and amid the slower pace of sowing. Government reports indicate that the weakening of rains has impacted the sowing of crops in Maharashtra, Gujarat, Rajasthan, Haryana, and Punjab. Area sown under soybean was lagging behind last year's area by nearly 11.05 percent. Planting of overall