Tuesday, 01 January 2013 15:08
MUMBAI: Indian rapeseed futures rose on Tuesday to their highest level in more than a week on tight supplies and concerns a sharp drop in temperature in the country's top producing Rajasthan state could hurt the crop's growth.
Soybeans rose on thin supplies, while soyoil edged higher on a likely rise in demand due to the winter season.
"Temperature has come down below normal in Rajasthan. If the situation remains like this for a longer time, we can see an adverse impact on rapeseed crop," said Vedika Narvekar, a senior analyst with Angel Commodities Broking.
North Rajasthan is likely to witness fog or dense fog conditions in the next three days, the weather department said on Tuesday morning.
As of 0758 GMT, the January rapeseed contract on the National Commodity and Derivatives Exchange was up 1.27 percent at 4,232 rupees per 100 kg, after rising to 4,245 rupees earlier in the day.
The February soybean contract rose 0.32 percent to 3,284 rupees per 100 kg, while the soyoil contract was up 0.23 percent at 686.75 rupees per 10 kg.
Indian farmers have cultivated rapeseed on 6.5 million hectares as of Dec. 28, compared with 6.38 million hectares during the same period last year.
At the Indore spot market in Madhya Pradesh, soyoil was down 2.4 rupees at 708.1 rupees per 10 kg, while soybeans nudged down by a rupee to 3,313 rupees per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed climbed by 25 rupees to 4,275 rupees.
India's palm oil imports in January are likely to rise to a record high as Malaysia, the world's No. 2 palm oil producer, allowed duty free exports, a senior industry official said on Dec. 20.
India meets more than half of its edible oil requirement through imports, which largely constitute palm oil.
Copyright Reuters, 2013