Friday, 04 October 2013
NEW DELHI: Indian soybean futures fell on Friday as gains in the rupee hurt the prospects of returns from soymeal exports in Asia’s leading supplier of the animal feed.
The soybean contract gave up initial gains as the rupee rose to a seven-week high against the US dollar.
Soybean, the main Indian summer-sown oilseed crop, is processed to produce cooking oil and soymeal used as animal feed.
A strong rupee makes edible oil imports cheaper, but cuts the returns of oilmeal exporters. The rupee rose on Friday.
At 0900 GMT, the key November soybean contract was down 0.5 percent at 3,544 rupees ($57.38) per 100 kg on the National Commodity and Derivatives Exchange, after hitting the day’s high at 3,589.5 rupees.
Demand from cooking oil refiners ahead of the festival season kept the soybean spot price up.
In the next few weeks, India will celebrate festivals such as Dussehra and Diwali, during which demand for edible oil rises.
“The gain in the rupee lowered the prospects for soymeal exports but it will make soyoil imports cheaper,” said Prasoon Mathur, a senior analyst with brokerage Religare Commodities.
He said the short term outlook for soybean futures hints at higher prices as the spot would be up due to demand from edible oil processors ahead of the festival season.
Traders said soybean growers were holding back superior quality produce from the new harvest as they expect spot prices to rise in the coming weeks.
The key November soyoil contract was 0.4 percent lower at 670.85 rupees per 10 kg, while the rapeseed contract for November fell 0.4 percent to 3,552 rupees per 100 kg.
At the Kota spot market in western Rajasthan state, soybeans rose 8.5 rupees to 3,556 rupees per 100 kg. In Mumbai spot, soyoil fell 4.2 rupee to 683.5 rupees per 10 kg. At Jaipur in Rajasthan, rapeseed fell 5 rupees to 3,620.7 rupees. Courtesy: Reuters
Published in ZaraiMedia.com