August 18, 2013
Indian oilseeds and soyaoil futures jumped more than 2 percent on Friday following gains in overseas edible oil prices and as the rupee hit a record low. A weak rupee makes edible oil imports expensive, but raises the returns of oilmeal exporters.
The rupee fell to a record low as the central bank’s measures to tighten capital outflows and curb gold imports were seen as unlikely to prop up the currency and could even spark further selling if they spook foreign investors. US soyabean futures were little changed, hovering around their highest in three weeks, while Malaysian palm oil futures climbed to their highest in more than a month.
At 0819 GMT, the key October soyabean contract was up 2.09 percent at 3,052 rupees per 100 kg on the National Commodity and Derivatives Exchange. “The rupee is surprising. Suddenly the cost of imports has risen. Traders expecting a further weakness in the rupee are increasing purchases in the spot market,” said an Indore-based oil miller. The key September soyaoil contract rose 2.12 percent to 666.95 rupees per 10 kg, while the rapeseed contract for September jumped 2.74 percent to 3,378 rupees per 100 kg.
Indian farmers have grown soyabeans on 11.88 million hectares as of August 1, compared with 10.31 million hectares a year earlier, farm ministry data showed. At the Indore spot market in Madhya Pradesh, soyaoil was up 0.55 rupee at 681.70 rupees per 10 kg, while soyabeans were steady at 3,559 rupees per 100 kg. At Jaipur in Rajasthan, rapeseed jumped 32 rupees to 3,532 rupees. Courtesy Reuters
Published in ZaraiMedia.com