Indian soyabean futures were treading water on Friday as profit-taking offset robust demand in spot markets and concerns that supplies may get disrupted again due to rains. Soyaoil and rapeseed futures edged higher due to good demand in spot markets due to a festival.
At 0758 GMT, the key November soyabean contract was slightly down 0.09 percent at 3,737 rupees ($60.85) per 100 kg on the National Commodity and Derivatives Exchange, after hitting a three-month high of 3,824 rupees in the previous session. "Some traders are booking profit in the futures market. In spot markets demand is still healthy. Oil mills are actively buying soyabeans and rapeseed," said Prasoon Mathur, a senior analyst with brokerage Religare Commodities.
Madhya Pradesh and Maharashtra are the country's top two soyabean producing states. The weather department has forecast rainfall in both states in the next three days. Rains can disrupt harvesting and tighten supplies. India's soyabean production in 2013/14 is likely to drop by 4.4 percent from the previous year to 10.23 million tonnes after heavy rains in growing areas during the harvest season damaged the crop, a leading trade body said on Monday.
The key November soyaoil contract was up 0.40 percent at 727.50 rupees per 10 kg. The rapeseed contract for November was up 0.32 percent at 3,708 rupees per 100 kg. It jumped to 3,748 rupees in the previous session, the highest level since January 18. India will celebrate the Hindu festival of Diwali in the first week of November. Demand for edible oil usually rises ahead of the festival. At the Indore spot market in Madhya Pradesh, soyabeans rose 14 rupees to 3,700 rupees per 100 kg, while soyaoil eased 0.20 rupees to 729.55 rupees per 10 kg. At Jaipur in Rajasthan, rapeseed edged down 15 rupees to 3,785 rupees.