March 22, 2011

Indian soy eases from week-long high on profit-taking

India soy eased lower on Monday (Mar 21) afternoon from its highest level in over a week due to profit-taking after gaining 2.7% in the previous three sessions, analysts said.

Weak overseas leads kept the downside limited. At 3:15 p.m., the most-active soy for April delivery on the National Commodity and Derivatives Exchange (NCDEX) was trading 0.44% lower at INR2,365.50 (US$52.6) per 100 kg. The contract had struck a high of INR2,379 (US$52.9) on Saturday, a level last seen on March 11.

"There is some profit-taking after last week's gains. Soybean may come down to INR2,330 (US$51.81)," said Chowda Reddy, senior analyst with JRG Wealth Management.

CBOT soy was trading 0.35% higher, while Malaysian palm oil was trading 0.26% lower.

Soyoil for April delivery on the NCDEX was trading INR0.90 (US$0.02) per 10 kg, while rapeseed for 0.98% lower at INR2,739 (US$60.9) per 100 kg.

Soyoil may trade in the range of INR610-616 (US$13.56-$13.7), said Reddy.

India imported 549,881 tonnes of vegetable oils in February, down by about a fifth from a year ago, trade data released on Monday showed, a fall largely due to higher crushing of domestic oilseeds following a normal monsoon. See

India's rapeseed output in 2011 could jump 16.1% to 6.85 million tonnes, helped by favourable weather conditions, a leading trade body had said.

The north-western state of Rajasthan is the biggest producer of rapeseed in the country.