Indian soyabean, soyaoil drop on profit-taking

Indian soyabean and soyaoil futures eased on Friday after hitting their contract highs on profit-taking driven by losses in overseas prices and a strong rupee, though thin supplies in spot markets limited the downside. Malaysian palm oil futures eased on Friday due to profit-taking after five days of gains, with trading seen range bound as the focus shifts to US lawmakers who are struggling to reach a deal to avert a possible sovereign default next week.
"Traders are booking profits in soyabean. The recovery in the rupee is also weighing," said Chowda Reddy, a senior analyst with Inditrade Derivatives & Commodities. "The downside in soyabean is limited. Many soyabean growing areas are likely to get rainfall due to the cyclone and that could damage the crop." Soyabean-growing areas of Maharashtra, the country's second-biggest producer, are likely to receive heavy rainfall over the next two days, the weather department said.
India's east coast braced on Friday for a cyclone covering half the size of the country, with tens of thousands of residents in low-lying areas fleeing their homes after authorities forecast a risk to life. India's soyameal exports surged to 173,381 tonnes in September from 6,525 tonnes a year earlier.
At 0823 GMT, the key November soyabean contract was down 0.79 percent at 3,652 rupees ($59.63) per 100 kg on the National Commodity and Derivatives Exchange, after hitting a contract high of 3,709 rupees earlier in the day. India could export as much as 5 million tonnes of soyameal in the year from October 1, 2013, a rise of about 25 percent on the previous year, as Asia's top exporter of the animal feed finds strong demand from Iran and Thailand. A strong rupee makes edible oil imports cheaper, but trims the returns of oilmeal exporters. The rupee rose on Friday.
The key November soyaoil contract was 0.78 percent lower at 696.05 rupees per 10 kg, after hitting a contract high of 705.9 rupees earlier in the day. The rapeseed contract for November jumped 1.30 percent to 3,649 rupees per 100 kg. In the next few weeks, India will celebrate festivals such as Dussehra and Diwali, when edible oil consumption typically rises. At the Indore spot market in Madhya Pradesh, soyabeans rose 9 rupees to 3,615 rupees per 100 kg, while soyaoil edged up 3.60 rupees to 717 rupees per 10 kg. At Jaipur in Rajasthan, rapeseed rose 26 rupees to 3,717 rupees.