MUMBAI: Indian soybean futures rose 1 percent on Monday to their highest level in nearly a month, on an upside in overseas prices and a likely drop in supplies due to festivals, while soyoil edged higher on good demand in spot markets.
Rapeseed futures also edged higher, following gains in edible oils.
"Good demand for soybean from China is keeping overseas markets firm. In local markets, traders are expecting a temporary drop in supplies due to festivals," said Chowda Reddy, a senior analyst with JRG Wealth Management.
Malaysian palm oil futures were up 1.32 percent at 2,534 ringgit per tonne at 0823 GMT, while US soybeans rose 1.17 percent to $15.52-1/4 per bushel.
The November soybean contract on India's National Commodity and Derivatives Exchange was up 1 percent at 3,342 rupees per 100 kg, after rising to 3,349 rupees earlier in the day.
Indians will celebrate Dussehra this week and Diwali in November. Spot markets for agriculture commodities remain closed on key festival days and farmers also prefer to celebrate instead of harvesting crops.
Rising exports demand for soymeal also supported soybean prices, dealers said.
The November soyoil contract was up 1.24 percent at 687.2 rupees per 10 kg, while rapeseed rose 0.47 percent to 4,259 rupees per 100 kg.
Demand for edible oils rises during these festivals.
Soybean 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.
At the Indore spot market in Madhya Pradesh, soyoil climbed 4.05 rupees to 691.8 rupees per 10 kg, while soybeans rose 27 rupees to 3,266 rupees per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed jumped 50 rupees to 4,275 rupees.
Comments
Comments are closed.