March 25, 2008

Indian rapeseed futures recover on firm soy, lower arrivals

Indian rapeseed futures hit the final upper circuit of 4 percent on Monday on firm soy and oilseed, after dropping by more than 10 percent in five days to Thursday.

The Indian markets were closed on Friday and Saturday for a religious holiday.

Rapeseed prices were supported by lower arrivals from Rajasthan, a leading producer.

On Monday, Rajasthan only delivered 110,000-130,000 bags of about 85 kg each against an average daily arrival of about 180,000 bags last week.

Rapeseed May futures hit INR565.5 (US$14.09) per 20 kilogramme, while the July contract touched a high of INR574 (US$14.29).

A move of 3 percent up or down in the contracts triggers an automatic cooling-off period of 15 minutes, during which only trades at prices within 3 percent of the previous close are permitted.