Indian oilseeds, soyaoil futures ease on weak demand

November 30, 2013

Soybean Oil seeds
Soybean Oil seeds

Indian oilseeds and soyaoil futures eased on Thursday, following overseas markets and on sluggish demand in local spot markets. US soyabean futures shed 0.7 percent, or 9-1/4 cents, on Wednesday to $13.20 a bushel after touching their highest since September 19.

“Soyabean supplies are limited, but supply of cotton seed oil is increasing in the market. That may put pressure on edible oil prices,” said Faiyaz Hudani, associate vice president, research at Kotak Commodity Services Ltd.

Cotton supplies from the new season crop have been rising in spot markets. * A weaker rupee makes edible oil imports expensive, but raises the returns of oilmeal exporters. The rupee edged down on Thursday.

Indian soyameal exports rose to 182,724 tonnes in October from 49,840 tonnes a year earlier.

At 0748 GMT, the key December soyabean contract on the National Commodity and Derivatives Exchange was down 0.54 percent at 3,864.50 rupees per 100 kg, while the December soyaoil contract fell 0.40 percent to 721.15 rupees per 10 kg.

India’s soyabean production in 2013/14 is likely to drop 4.4 percent from the previous year to 10.23 million tonnes after heavy rains in growing areas during the harvest season damaged the crop.

The rapeseed contract for December was down 0.34 percent at 3,781 rupees per 100 kg.

Indian farmers have cultivated rapeseed on 5.44 million hectares as on November 21, compared with 5.24 million hectares a year earlier.

At the Indore spot market in Madhya Pradesh, soyabeans eased 6 rupees to 3,932 rupees per 100 kg, while soyaoil fell 2.15 rupees to 719.25 rupees per 10 kg. At Jaipur in Rajasthan, rapeseed was down 3 rupees at 3,850 rupees.

Courtesy Reuters

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