Indian soyaoil futures rose 1 percent on Friday, tracking firm overseas markets and due to a weak rupee and an improvement inn demand in the winter season Soyabean futures were steady as a drop in the world market outweighed good exports demand for soyameal, while rapeseed eased on higher acreage.
As of 0837 GMT, Malaysian palm oil futures were up 3.1 percent at 2,393 ringgit per tonne, while US soyabeans rose 0.98 percent to $14.22-1/2 per bushel, after shedding 2 percent in the previous session. India meets more than half of its edible oil requirement through imports, which largely constitute palm oil. A weak rupee makes imports of edible oil expensive but also raises returns for oilmeal exporters. The January soyabean contract on India's National Commodity and Derivatives Exchange was up 0.38 percent at 3,310 rupees per 100 kg.
The January soyaoil contract rose 0.74 percent to 706.85 rupees per 10 kg, while the January rapeseed contract dropped 0.4 percent to 4,217 rupees per 100 kg. "In spot markets demand for edible oil is good due to winter season. For the next few weeks demand will remain strong," said Chowda Reddy, a senior analyst with JRG Wealth Management. "Soyabeans are getting support from meal exports. Oil millers are receiving good export orders," Reddy said.
India's soyameal exports surged more than ten-fold in November from a month ago on fresh supplies and strong demand from France and Japan. Indian farmers have cultivated rapeseed on 6.36 million hectares as of December 14, compared with 6.16 million hectares during the same period last year. At the Indore spot market in Madhya Pradesh, soyaoil was steady at 719.25 rupees per 10 kg, while soyabeans edged up 3 rupees to 3,333 rupees per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed rose by 20 rupees to 4,270 rupees.