India's rapeseed futures rise on lower production estimate

Indian rapeseed futures rose on Wednesday (May 12) on lower-level buying prompted by an expected drop in the production, analysts said.

"Lower production estimate may prompt traders to start stocking rapeseed in coming weeks," said an analyst at Mumbai-based commodity brokerage.

Rapeseed harvest in India is likely to be 6.59 million tonnes, down from the estimated 7.43 million in February and the actual production of 7.2 million tonnes last year, official data showed.

The June rapeseed contract NRSM0 on the National Commodity and Derivatives Exchange finished 0.62% higher to INR504.2 (US$11.2) per 20 kg. In the Jaipur spot market in Rajasthan, the top rapeseed producing state, the price nudged up by INR0.20 to INR492.50 (US$10.9) per 20 kg.