September 13, 2013
Indian oilseeds and soyaoil futures rose on Thursday on good demand for edible oils due to the ongoing festive season, gains in overseas markets and as the rupee fell. Rising supplies of soyabeans in spot markets and higher inventory of rapeseed capped the upside. Chicago soyabean futures rose for a second consecutive day on Thursday, ahead of a key US government report which is expected to forecast lower production following hot and dry weather across the country’s crop belt.
“Weak rupee and gains in the US market are bolstering sentiments,” said Nalini Rao, an analyst at India Infoline Ltd. “Indian oil millers are getting good export orders for soyameal. Though rainfall has stopped in Madhya Pradesh, still a few traders are worried about the yield as in August the state received heavy rainfall,” Rao said. A weak rupee makes edible oil imports expensive, but raises the returns of oilmeal exporters. The rupee eased on Thursday after five days of gains.
India has sold 350,000 tonnes to 400,000 tonnes of new-crop soyameal for shipment between October and December on prospects of higher soyabean production and a weak rupee, an industry official said last month. India’s soyameal exports in August rose about three quarters from a month earlier as a weak rupee made shipments more competitive and demand from Europe picked up.
At 0748 GMT, the key October soyabean contract was up 0.91 percent at 3,449 rupees per 100 kg on the National Commodity and Derivatives Exchange. The key October soyaoil contract rose 0.72 percent to 667.75 rupees per 10 kg, while the rapeseed contract for October edged up 0.63 percent to 3,542 rupees per 100 kg. Courtesy Reuters
Published in ZaraiMedia.com