Indian soyabean futures slipped on Wednesday on rising supplies from the new season crop and a strong rupee, while rapeseed eased due to an expected rise in production after the top producing Rajasthan state received higher-than-normal rainfall. Soyaoil was treading water in line with Malaysian palm oil.
Malaysian palm oil futures were up 0.08 percent at 2,468 ringgit per tonne at 0913 GMT, while US soyabeans rose 0.28 percent to $14.98 per bushel. The November soyaoil contract on the National Commodity and Derivatives Exchange was down 0.28 percent at 648.2 rupees per 10 kg. "Arrival pressure and appreciation in the rupee are pulling down the market. In the short-term, the market can fall further due to these factors," said an analyst at Emkay Commotrade Ltd.
A strong rupee makes edible oil imports cheaper and at the same time trims returns of oilmeal exporters. The November soyabean contract was down 1.17 percent at 3,084 rupees per 100 kg, while rapeseed eased 0.94 percent to 4,206 rupees per 100 kg. Higher edible oil imports in September were offsetting an improvement in the demand due to festivals, dealers said. Indians will celebrate Dussehra this month and Diwali in November. Demand for edible oils usually rises during these festivals.
Edible oil imports in September rose to 976,417 tonnes, from 878,869 tonnes a year earlier, data released by the Solvent Extractors' Association showed on Monday. Soyabean production in 2012/13 is expected to rise 8.8 percent on year to 12.67 million tonnes, while rapeseed output is likely to grow nearly 25 percent to 6.5 million tonnes, industry officials said. At the Indore spot market in Madhya Pradesh, soyaoil edged down 2.35 rupees to 665.3 rupees per 10 kg, while soyabeans fell 29 rupees to 3,115 rupees per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed jumped 178 rupees to 4,263 rupees.
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