Indian rapeseed futures extended gains on Monday for the fifth straight session on an expected drop in production due to lower acreage, while soyaoil rose taking cues from rival palm oil. Thin supplies in spots pushed soyabean futures up.
Rapeseed area fell by 8.5 percent to 6.5 million hectare, according to the latest update of the farm ministry. Malaysian palm oil futures ended higher as buyers were encouraged by the world's No 2 producing nation's decision not to reinstate an export tax on palm for March.
The benchmark April contract rose 1.1 percent to 2,312 ringgit ($647) per tonne by Monday's close. The April rapeseed contract on the National Commodity and Derivatives Exchange (NCDEX) rose 1.7 percent to 3,400 rupees ($55) per 100 kg, while the April soyabean contract closed 1.0 percent higher at 3,427 rupees per 100 kg.
At 1245 GMT, the key April soyaoil contract was 1.0 percent up at 611 rupees per 10 kg. Oilseeds and soyaoil futures may open down on correction in the next session when the market reopens after a holiday on Tuesday due to a Hindu festival, said Veeresh Hiremath, research head of Hyderabad-based brokerage Karvy Comtrade.
SUGAR Sugar futures reversed the trend witnessed during the last four sessions, attracting fresh buying support on hopes that the Indian government would provide subsidy for raw exports.
The key March contract was quoted 1.1 percent higher at 2,670 rupees per 100 kg. India, the world's second biggest sugar producer, could provide export sops for 1.4 million tonnes raw sugar, Food Minister Ram Vilas Paswan said last week. The contract could rise in the next session.
JEERA Indian jeera, or cumin seed, futures rose for the second straight session on lower sowing area and good export demand. The bullish sentiment may help it open higher in the next session. The key March jeera contract rose 2.8 percent to close at 14,625 rupees per 100 kg. It also hit the upper circuit level at 14,795 rupees during the day.
TURMERIC Turmeric futures reversed last week's losses on a rise in demand from North India while reports of crop damage from the South supported higher trade. The key April contract closed up 4.0 percent at 8,322 rupees per 100 kg. The contract could open down on profit taking in the next session.
GUAR SEED Indian guar seed futures rose on return of buying at lower levels and are expected to open up on bargain-buying in the next session. The March contract closed 2.7 percent higher at 3,827 rupees per 100 kg.
CHANA Indian chana, or chickpea, futures rose on buying support on expected lower output due to a sharp drop in the area under cultivation. The April contract closed 1.0 percent higher at 3,666 rupees per 100 kg. The contract is likely to open up on Wednesday.
CORN, WHEAT The March corn contract nudged up 0.6 percent at 1,259 rupees per 100 kg, while the March wheat contract was down 0.6 percent to 1,615 rupees per 100 kg.
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