Soyabean continued to decline on fears that the Forward Markets Commission will crack-down on speculation.
The FMC has in fact doubled the margin money investors have to pay for buying futures. The hike will come into effect tomorrow.
Besides rains in the growing areas of Madhya Pradesh have resulted in the acreage under soyabean increasing to 102 lakh hectares.
According to Mr Rajesh Aggarwal, spokesperson of the Soyabean Processing Association, the acreage is likely to increase by 2-3 lakh hectares given the monsoon showers in the growing areas.
All these factors have combined to trigger profit-booking sales by traders.
August futures were down Rs 40 and were quoting at Rs 4,434 for a quintal on the National Commodities Exchange of India. The October contract was down by Rs 34 at Rs 3,939 and the November contract by Rs 25 at Rs 3,768. The December contract declined by a similar margin to quote at Rs 3,780.
In the spot in Indore, the commodity quoted lower at Rs 4,592 for a quintal.