Indian rapeseed futures fell to their lowest level in nearly nine months on Wednesday on expectations of a bumper crop, while soyabeans ended lower for a second straight session on weak demand. The key April rapeseed contract on the National Commodity & Derivatives Exchange ended 0.13 percent up at 3,865 rupees ($56.81). Earlier in the session, the contract fell to as low as 3,822 rupees, its lowest level since April 30, 2015.
India's mustard output is likely to rise for the first time in three years and top producing Rajasthan state could grow 3.5 million tonnes of the winter oilseed this season. Mustard is also loosely referred to as rapeseed by the government. "Mustard can take support at around 3,800 rupees. The market will take fresh cues when the new crop comes," said Chowda Reddy, assistant vice-president at Inditrade Derivatives and Commodities. The new mustard crop will be harvested in March-April. The February soyabean contract dropped 0.69 percent to 3,720 rupees per 100 kg. The weak export demand for animal feed or meal, the by-product of oilseed crushing, weighed on sentiment. February soyaoil futures were 0.50 percent higher at 612.40 rupees per 10 kg at 1249 GMT.
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