Indian oilseeds and soyaoil futures were treading water on Wednesday as gains in overseas edible oil prices offset a likely rise in local soyabean output due to expansion in acreage. At 0807 GMT, the benchmark Malaysian palm oil contract was up 1.17 percent at 2,254 ringgit per tonne, while US soyabeans were 0.04 percent higher at $12.86-3/4 per bushel.
"The expected rise in soyabean production is restricting the upside in oilseeds. Edible oil inventory is huge and the crushing of new-season soyabeans will further increase supplies," said Nalini Rao, an analyst at India Infoline Ltd. Supplies from new-season soyabean crop are likely to begin in September, nearly a month in advance due to early sowing, dealers said.
Indian farmers have grown soyabeans on 10.31 million hectares as of July 11, compared with 5.45 million hectares a year earlier, farm ministry data showed. The key October soyabean contract on the National Commodity and Derivatives Exchange was up 0.13 percent at 3,171 rupees per 100 kg, while the key August soyaoil contract edged up 0.19 percent to 672.70 rupees per 10 kg.
India's refined palm oil imports fell around 21 percent in June from the previous month's record as weakness in the rupee currency made overseas purchases more expensive. The rapeseed contract for August eased 0.17 percent to 3,429 rupees per 100 kg on higher production. At the Indore spot market in Madhya Pradesh, soyaoil was up 3.60 rupees at 690.90 rupees per 10 kg, while soyabeans rose 5 rupees to 3,777 rupees per 100 kg. At Jaipur in Rajasthan, rapeseed nudged up a rupee to 3,516 rupees.
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