March 4, 2009

India soy futures erased early losses on Tuesday (Mar 3) as demand in the spot market picked up on expectations of fresh soymeal exports after rupee fell to record lows, analysts and traders said.

The Indian rupee fell beyond 52 per dollar to a new record low in afternoon trade on Tuesday as a falling stock market intensified worries of capital outflows.

Traders said rapeseed arrivals have peaked in top producer Rajasthan and arrivals were steady at 300,000 bags of about 85 kilogrammes, adding that millers are now buying to meet their annual requirements.

They expect demand for rapeseed will pick up as spot rates have recently seen a sharper fall than soy.