Weekend rain in soya growing regions of Madhya Pradesh and forecast of more rains dragged soyabean futures on the National Commodities and Derivatives Exchange on Tuesday.
A 3 per cent drop on the Chicago Board of Trade soyabean futures also played a role in the counter dropping. The Chicago market also reacted to reports that expected showers in the US would boost soyabean prospects. There is hope that some rain in the next few days could save the soyabean crop there.
In the spot market at Indore, soyabean was quoted at Rs 4,958 a quintal.
On the NCDEX, the long-month contracts dropped sharply than the near ones.
August soyabean contracts dropped 1.86 per cent from Monday’s close to Rs 4,819 a quintal, while October contracts slid 1.77 per cent to Rs 3,957. November contracts slid 2.4 per cent to Rs 3,824.50 and December by 2.21 per cent to Rs 3,848.
On the CBOT, soyabean for November delivery, the most active contract, dropped 3.8 per cent to $16.22 a bushel. The front-month August contract declined 59 cents to $16.98.