India soybean, soyoil rise on weak rupee; rapeseed down
Tuesday, 06 November 2012
MUMBAI: Indian soybean and soyoil futures edged higher on Tuesday, supported by a weak rupee and a rise in the US soybean prices, while rapeseed eased on an expected rise in the output.
Malaysian palm oil futures were down 0.71 percent at 2,394 ringgit per tonne at 0817 GMT and US soybeans rose 1.03 percent to $15.19-3/4 per bushel.
The December soybean contract on India’s National Commodity and Derivatives Exchange was up 0.25 percent at 3,345 rupees per 100 kg.
“Rebound in overseas prices and weak rupee are supporting local oilseeds,” said Vibhu Ratandhara, associate vice-president, research, Bonanza Commodity.
“Soybean arrivals pressure is not building up as per expectations. Many farmers are holding back their harvest,” Ratandhara said.
A weak rupee makes edible oil imports expensive and at the same time raises returns of oilmeal exporters.
India’s soymeal exports jumped more than seven fold in October from a month earlier, when they hit their lowest level in at least two years, as fresh supplies rolled in and competitive prices attracted demand.
The December soyoil contract climbed 0.28 percent to 670.4 rupees per 10 kg, while rapeseed edged down 0.36 percent to 4,176 rupees per 100 kg.
At the Indore spot market in Madhya Pradesh, soyoil rose 4.85 rupees to 696.8 rupees per 10 kg, while soybean jumped 62 rupees to 3,330 rupees per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed edged up by 25 rupees to 4,262 rupees.
India’s soybean production in 2012/13 is expected to rise 8.8 percent on year to 12.67 million tonnes, while rapeseed output is likely to grow nearly 25 percent to 6.5 million tonnes, industry officials said.
India should impose a 10 percent tax on crude palm oil imports to protect its farmers and the industry from cheap imports, a leading analyst said earlier this month.