Soya Trades at 10% Discount to Spot Price
Mumbai: A few silver linings have begun appearing amid bleak clouds of India’s water scarcity. The futures market, which reflects traders’ future price expectations, is showing soyabean for October delivery trading at an almost 10% discount to the spot price of .₹ 4,149 a quintal.
This means that if the price is .₹ 4,149 a quintal (100 kilos) today, traders today feel that in mid-Oct it will be available for .₹ 3,737. This is because of news of an ebbing El Nino, which has caused two successive monsoon failures in India. The Climate Forecast System (CFS) of the Indian Institute of Tropical Meteorology (IITM) predicts mostly normal and sometimes heavy rainfall across the country barring parts of coastal Gujarat, western Rajasthan, northern Kashmir and parts of the Northeast.
Another oil, which, post refining, is the most consumed in India –– crude palm oil –– is also trading at a small discount to spot prices. Data on MCX shows that the June futures which was trading at a premium to the spot price last Monday, went into a discount to the spot price on Thursday (markets were closed for the Gudi padwa holiday). From trading at a premium of 12% on Monday, the June contract slipped to half a percent discount of .₹ 560.9 per 10 kilos to the spot price.