Indian soyabean and soyaoil futures were treading water on Friday as profit-taking driven by a likely rise in soyabean supplies offset healthy demand for edible oils due to festivals. Rapeseed futures fell on weak demand and a likely rise in the acreage.
Soyabean harvesting in key growing areas was disrupted earlier this month due to heavy rainfalls. The weather has become dry now and supplies are likely to rise from next week, dealers said. "Edible oil stocks have fallen and demand is good due to festivals.
It will support soyaoil in the short term," said Subhranil Dey, an analyst with SMC Comtrade. Edible oil stocks at Indian ports and pipelines were estimated at 1.465 million tonnes as on October 1, the lowest level in nine months, the Solvent Extractors Association had said earlier this week.
India will celebrate the Hindu festival of Diwali in the first week of November. Edible oil demand usually rises ahead of the festival. At 0815 GMT, the key November soyabean contract was up 0.13 percent at 3,590 rupees ($58.58) per 100 kg on the National Commodity and Derivatives Exchange. The key November soyaoil contract was down 0.18 percent at 708.10 rupees per 10 kg after rising to 711 rupees earlier in the day, the highest level since August 28.
The rapeseed contract for November fell 0.49 percent to 3,661 rupees per 100 kg. India's palm oil imports surged 20.6 percent in September from a month ago, rising for the first time in four months, as a recovery in the rupee encouraged refiners to buy more for the peak festival season. In the physical market, soyaoil eased 5.25 rupees to 729.75 rupees per 10 kg in Mumbai, while at Jaipur in Rajasthan, rapeseed edged down 11 rupees to 3,713 rupees.
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