Indian oilseeds and soyaoil futures were treading water on Monday as a depreciating rupee outweighed ample rainfall in southern and western states, which could boost sowing of soyabeans. Weak export demand for Indian oilmeals also weighed on sentiment.
At 0740 GMT, the benchmark Malaysian palm oil contract was up 0.04 percent at 2,458 ringgit per tonne, while US soyabeans fell 0.51 percent to $15.20-1/2 per bushel. "Monsoon has covered most part of Maharashtra. It can lead to early sowing of soyabean," said Prasoon Mathur, a senior analyst with Religare Commodities. "The progress of monsoon in the next week, especially in Madhya Pradesh, is crucial for oilseeds." The central Madhya Pradesh state is the country's top soyabean producer, followed by western state of Maharashtra. Indian farmers are expected to increase soyabean planting in 2013/14, encouraged by a rally in prices and the need to cultivate a sturdy crop to prepare for the possibility of an unhelpful monsoon season. The key July soyaoil contract on the National Commodity and Derivatives Exchange edged up 0.26 percent to 692.95 rupees per 10 kg.
The key July soyabean contract was up 0.01 percent at 3,772 rupees per 100 kg, while the rapeseed contract for July rose 0.31 percent to 3,554 rupees per 100 kg. A weak rupee makes edible oil imports expensive but also raises returns for oil meal exporters. The local currency hit a record low on Monday. India's soyameal exports fell to 96,492 tonnes in May, from 142,588 tonnes a year ago, the Solvent Extractors' Association of India said in a statement. At the Indore spot market in Madhya Pradesh, soyaoil edged up 2.95 rupees to 707.85 rupees per 10 kg, while soyabeans rose 7 rupees to 3,858 rupees per 100 kg. At Jaipur in Rajasthan, rapeseed was up 2 rupees at 3,520 rupees.
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