Indian soyabean futures fall; soyaoil up
November 24, 2012
Indian soyabean futures extended losses for a third straight session, tracking a fall in overseas prices and on an estimated increase in production, while soyaoil edged higher due to a rise in demand from north India and weakness in the rupee. Rapeseed futures rose on short-covering, after falling nearly 3.5 percent in previous three sessions.
Malaysian palm oil futures were down 1.31 percent at 2,411 ringgit per tonne at 10 GMT. “Soyabean prices are under pressure from increased supply as farmers who were earlier holding stocks, expecting higher prices, have started bringing their produce to spot markets,” said Faiyaz Hudani, a senior analyst with Kotak Commodity Services.
Demand for soyaoil from north India is rising with the decline in temperature and this is supporting prices, Hudani said. A weak rupee makes edible oil imports expensive and at the same time raises returns of oilmeal exporters. The rupee was down in afternoon trade on Thursday. India fulfils more than half of its edible oil requirement through imports, mainly palm oil produced in Malaysia and Indonesia.
The December soyabean contract on India’s National Commodity and Derivatives Exchange was down 0.42 percent at 3,239 rupees per 100 kg. The December soyaoil contract was up 1.04 percent at 712.7 rupees per 10 kg, while rapeseed was up 0.29 percent at 4,167 rupees per 100 kg in choppy trade. India’s soyabean 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.