February 11, 2010

Indian soy eases; rapeseed up on low output

India's soy futures ended slightly lower on Wednesday (Feb 10) due to weak meal exports, though recovery in overseas markets and lower output forecast for rapeseed limited the losses, analysts said.

"Soymeal export demand is a crucial thing, but it is sluggish for last few weeks. Unless it improves, we can't see a sustained rise in prices," Badruddin Khan, senior research analyst, Angel Commodities Broking, said.

India's January oilmeal exports slumped 32% from a year earlier, falling for the third straight month, due to weak demand from Vietnam, South Korea, Indonesia, Japan and Thailand, a trade body said.

The soy March contract NSBH0 on the National Commodity and Derivatives Exchange ended down 0.19% at Rs2,150 (US$46.30) per 100 kg.

The March soyoil NSOH0 ended down 0.56% at Rs466.55 (US$10.04) per 10 kg, while April rapeseed contract NRSJ0 ended up 0.41% at Rs487.7 (US$10.50) per 20 kg on lower output forecast.

US soy and corn futures edged higher on Wednesday, while wheat rose half a percent as a weak dollar and strength in Asian equity markets lifted grain futures.

The USDA on Tuesday pegged world soy production at 255.02 million tonnes for the 2009-10 crop year, up from the previous estimate of 253.38 million tonnes.

 
India's rapeseed output may fall an annual 4.8% in 2010 to 5.9 million tonnes, a leading trade body said on Sunday, as the world's fourth-biggest producer of the crop suffered its worst monsoon in nearly three decades.