Indian soyabean and soyaoil futures fell on Friday following a drop in overseas prices and on an estimated rise in oilseeds production, though a weak rupee limited the downside. Malaysian palm oil futures were down 0.64 percent at 2,321 ringgit per tonne at 0846 GMT, while US soyabeans nudged down 0.25 percent to $14.95-1/2 per bushel, after shedding 0.6 percent in the previous session.
"Soyabean prices in the world market are continuously falling. Brazil and Argentina are likely to produce bumper crop," said Chowda Reddy, a senior analyst with JRG Wealth Management. The December soyabean contract on India's National Commodity and Derivatives Exchange was down 0.7 percent at 3,323 rupees per 100 kg.
The fall in soyabean prices was restricted by a weak rupee and rising export orders for soyameal, dealers said. A weak rupee makes edible oil imports expensive and at the same time raises returns of oilmeal exporters. India's soyameal exports jumped more than seven fold in October from a month earlier, when they hit their lowest level in at least two years, as fresh supplies rolled in and competitive prices attracted demand.
The December soyaoil contract was down 0.14 percent at 663.2 rupees per 10 kg, while rapeseed was 0.5 percent higher at 4,250 rupees per 100 kg. India fulfils more than half of its edible oil requirement through imports, which constitute largely palm oil.
India's 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 rose by 0.15 rupee to 696.75 rupees per 10 kg, while soyabean nudged up by 3 rupees to 3,365 rupees per 100 kg. At Sri hGanganagar in Rajasthan, rapeseed dropped by 38 rupees to 4,275 rupees.
Comments
Comments are closed.