April 25, 2013

Boosted by an improvement in demand in the spot market from oil millers and weak rupee, Indian soy futures rose more than 2%, while soyoil edged higher, following gains in Malaysian palm oil.

At 0743 GMT, the benchmark Malaysian palm oil contract was up 0.49% at MYR2,266 (US$745) per tonne, while US soy rose 0.6% to US$14.25-3/4 per bushel.

"Traders are expecting a revival in soymeal exports to Iran. Weak rupee is also helping sentiment," said Prasoon Mathur, a senior analyst with Religare Commodities. A weak rupee makes edible oil imports expensive and raises the returns of oilmeal exporters. The rupee fell on Tuesday (Apr 16).

The key May soy contract on India's National Commodity and Derivatives Exchange was up 1.84% at INR3,925 (US$72.50) per 100 kilogrammes. India meets more than half of its edible oil requirement through imports, which largely constitute palm oil.

The key May soyoil contract rose 0.43 % to INR704.70 (US$13) per 10 kilogrammes, while the rapeseed contract for May edged higher 0.26% to INR3,479 (US$64) per 100 kilogrammes. At the Indore spot market in Madhya Pradesh, soyoil edged up INR0.75 (US$0.01) to INR725.25 (US$13.40) per 10 kilogrammes, while soy rose INR42 (US$0.78) to INR3,986 (US$73.63) per 100 kilogrammes. At Jaipur in Rajasthan, rapeseed eased INR2 (US$0.04) to INR3,481 (US$64.30).

Rapeseed supplies are rising from the new season crop. Output of rapeseed is estimated to have risen about 22% on-year to 7.15 million tonnes in 2012-13, a trade body said.