Buoyed by contracts hitting a record high on the Chicago Board of Trade (CBOT), soyabean futures on the National Commodities and Derivatives Exchange surged further, rising by the maximum permissible limit on Thursday.
August contracts rose to a new high of Rs 4,735 a quintal before stabilising at Rs 4,725, up by Rs 135. On CBOT, August soyabean contracts hit a record $17.11 a bushel in Thursday’s electronic trade.
Unfavourable weather conditions in the US Midwest, where soyabean is the main crop, could affect yield prospects, according to analysts. The US is the world’s largest producer of soyabean and is currently facing a drought.
Besides, in India rains have been patchy in the main growing States of Madhya Pradesh, Maharashtra and Rajasthan. Even in Andhra Pradesh, where soyabean has begun to make some headway, the monsoon has been deficient.
In the spot market, soyabean was quoted at Rs 4,659 a quintal at Indore.