Indian soyabean futures extended the previous session's gains on Thursday due to an upside in overseas prices and thin supplies in the local spot market amid healthy demand from oil mills. Soyaoil rose, following gains in Malaysian palm oil, while rapeseed was supported by stockists buying in local spot markets.
"Lower soyabean supplies are supporting prices. Oil mills are getting soyameal exports orders, but they are finding difficulties in procuring soyabean from the spot market," said Chowda Reddy, a senior analyst with JRG Wealth Management. The key May soyabean contract on India's National Commodity and Derivatives Exchange was up 2.22 percent at 3,985 rupees per 100 kg.
India's soyameal exports in April are likely to fall to 200,000 tonnes, down 36 percent from a year earlier, unless buying from Iran improves. The key May soyaoil contract was up 1.01 percent at 711.65 rupees per 10 kg, while the rapeseed contract for May rose 0.62 percent to 3,560 rupees per 100 kg. A strong rupee makes edible oil imports cheaper and trims the returns of oilmeal exporters. The rupee rose on Thursday.
India meets more than half of its edible oil requirement through imports, which largely constitute palm oil. At the Indore spot market in Madhya Pradesh, soyaoil edged up 5.1 rupee to 726.60 rupees per 10 kg, while soybeans jumped 77 rupees to 4,041 rupees per 100 kg. At Jaipur in Rajasthan, rapeseed rose 45 rupees to 3,545 rupees.
"Stockists buying is offsetting impact of higher supplies. Higher edible oil prices are prompting traders to buy rapeseed," Reddy said. Rapeseed supplies are rising from the new season crop. Output of rapeseed is estimated to have risen about 22 percent on year to 7.15 million tonnes in 2012-13, a trade body said.