Indian soyaoil futures were treading water on Thursday as a weak rupee and an expected rise in demand during the upcoming Ramadan festival offset a surge in edible oil imports. Soyabean and rapeseed eased as good rainfall in central and southern India at the start of the monsoon season raised hopes of higher oilseeds production.
At 0757 GMT, the benchmark Malaysian palm oil contract was down 0.16 percent at 2,447 ringgit per tonne, while US soyabeans fell 0.57 percent to $15.32 per bushel. "Usually demand increases during the Ramadan month, but supplies have also risen. The import data for May is showing a surge in palm oil imports," said Prerna Sharma, an analyst at Emkay Commotrade Ltd.
India's refined palm oil imports hit a record high in May by jumping 47.5 percent from April, a leading trade body said, pushing total purchases of the tropical oil up for the first time since January on lower prices. The key July soyaoil contract on the National Commodity and Derivatives Exchange edged up 0.04 percent to 695.20 rupees per 10 kg.
The key July soyabean contract was down 0.08 percent at 3,787 rupees per 100 kg, after rising to 3,818 rupees in the previous session, the highest level since May 20. The rapeseed contract for July eased 0.20 percent to 3,515 rupees per 100 kg. A weak rupee makes edible oil imports expensive but raises the returns for oil meal exporters. The local currency was trading near its record low level on Thursday.
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