India’s main soybean-growing areas received much-needed rain, ending a three-week dry spell.
More than three inches of rain fell in some places, according to the India Meteorological Department. Madhya Pradesh produces more than 50 percent of the nation’s soybean crop. Parts of Madhya Pradesh, Maharashtra and Rajasthan states are expected to receive rain throughout the week.
A bigger oilseed crop will cut reliance on imports of palm and soybean oils.
After the rains, soybean futures in Mumbai fell as much as 2.9 percent to 3,384 rupees (US$53.13), the lowest since March.
“The monsoon revival will benefit crops, definitely oilseeds,” Prerana Desai, vice president for research at Edelweiss Integrated Commodity Management Ltd., said in a report. “Agriculture commodity prices will come under pressure.”
Last week, V.S. Bhatia, director of state-owned Directorate of Soybean Research, said in a report that soybeans planted in the past two weeks needed rain in the next three to four days or they would have to be replanted.
The India Meteorological Department says El Nino will keep this year’s monsoon rains at 88 percent of average. Rainfall was 28 percent below average from July 1-12, after a 16 percent surplus in June. About 33 percent of the rain between June and September usually falls in July, making it a critical month for crop growth.