Indian soya futures up tracking global prices

29 May, 2013

Indian soya futures rose on Tuesday, tracking global prices, but rapeseed fell due to the absence of oilmeal export demand and timely arrival prospects of the monsoon. Soyaoil rose as Malaysian palm oil futures hit 1-1/2 month highs on signs of a recovery in demand, while soyabean futures in the United States were up on threat of planting delay due to recent heavy rains in the Midwest region.
At 0855 GMT, the benchmark Malaysian palm oil contract was up 0.6 percent at 2,395 ringgit ($790) per tonne, while US soyabeans were 0.6 percent higher at $14.84-1/2 per bushel. Weakness in the rupee will make soyaoil imports costlier as India, the world's biggest vegetable oil buyer, imports small quantity of the soft oil from Latin America to meet local demand for fried foods during marriages and festivals.
Oilseed spot prices were down as the on-time arrival of monsoon rains brightened due to favourable weather conditions over the southern Kerala coast. Timely progress of the monsoon over soyabean-growing areas of central India will boost prospects of better output for the main summer season oilseed crop by giving sufficient time to mature.
Lack of demand for rapeseed meal from traditional animal feedstock buyers in South East Asia also weighed on prices. The key June soyaoil contract on the National Commodity and Derivatives Exchange rose 0.5 percent to 710 rupees per 10 kg. The June soyabean contract gained 0.8 percent to 3,832 rupees per 100 kg. The rapeseed June contract fell 0.4 percent to 3,443 rupees per 100 kg. At the Indore spot market in Madhya Pradesh, soyabeans were down 28 rupees at 3,920 rupees per 100 kg, while soyaoil was almost flat at 727 rupees per 10 kg. At Jaipur in Rajasthan, rapeseed was down 19 rupees at 3,500 rupees.

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