India soybean drop on higher supplies; soyoil up

22 Nov, 2012

 

* Rapeseed futures rose on short-covering, after falling nearly 3.5 percent in previous three sessions.

 

* Malaysian palm oil futures were down 1.31 percent at 2,411 ringgit per tonne at 10 GMT.

 

* "Soybean prices are under pressure from increased supply as farmers who were earlier holding stocks, expecting higher prices, have started bringing their produce to spot markets," said Faiyaz Hudani, a senior analyst with Kotak Commodity Services.

 

* Demand for soyoil from north India is rising with the decline in temperature and this is supporting prices, Hudani said.

 

* A weak rupee makes edible oil imports expensive and at the same time raises returns of oilmeal exporters. The rupee was down in afternoon trade on Thursday.

 

* India fulfils more than half of its edible oil requirement through imports, mainly palm oil produced in Malaysia and Indonesia.

 

* The December soybean contract on India's National Commodity and Derivatives Exchange was down 0.42 percent at 3,239 rupees per 100 kg.

 

* The December soyoil contract was up 1.04 percent at 712.7 rupees per 10 kg, while rapeseed was up 0.29 percent at 4,167 rupees per 100 kg in choppy trade.

 

* India's 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 rose by 12.05 rupees to 728.95 rupees per 10 kg, while soybean dropped by 2 rupees to 3,274 rupees per 100 kg. At Jaipur in Rajasthan, rapeseed was flat at 4,400 rupees.

Copyright Reuters, 2012

Read Comments