Indian soyabean futures fell on Friday after hitting a two-week high in the previous session due to weak exports demand for soyameal and hopes a normal monsoon will increase oilseed production, though a weak rupee and gains in overseas markets limited the downside. Rapeseed futures were treading water on declining arrivals in spot markets.
At 0849 GMT, the benchmark Malaysian palm oil contract was up 0.9 percent at 2,457 ringgit per tonne, while US soyabeans rose 0.15 percent to $15.29-1/2 per bushel. "Soyameal exports demand is still weak. For the last two months exports are falling month on month basis," said Vedika Narvekar, a senior analyst with Angel Commodities Broking.
"Forecast of normal monsoon and early arrival of rains in southern India are weighing on sentiments. Sowing should be higher than last year." Indian farmers are expected to increase soyabean planting in 2013/14, encouraged by a rally in prices and the need to cultivate a sturdy crop to prepare for the possibility of an unhelpful monsoon season.
The key July soyaoil contract on the National Commodity and Derivatives Exchange edged down 0.32 percent to 690.80 rupees per 10 kg. The key July soyabean contract was down 0.57 percent at 3,758 rupees per 100 kg, while the rapeseed contract for July rose 0.34 percent to 3,545 rupees per 100 kg. A weak rupee makes edible oil imports expensive but also raises returns for oil meal exporters. The local currency was trading near its record low against the dollar.
India's soyameal exports fell to 96,492 tonnes in May, from 142,588 tonnes a year ago, the Solvent Extractors' Association of India said in a statement. At the Indore spot market in Madhya Pradesh, soyaoil nudged down 1.80 rupees to 705.60 rupees per 10 kg, while soyabeans rose by 2 rupees to 3,858 rupees per 100 kg. At Jaipur in Rajasthan, rapeseed was steady at 3,508 rupees.