May 25, 2010

Indian oilseeds futures extend gains on demand, weak rupee

Indian soy and rapeseed futures extended the previous week's gains on Monday (May 24) on some spot buying triggered by a fall in prices over the past three months as well as expectations of lower acreage, analysts said.

A rise in overseas markets and a weak rupee also boosted buying sentiment, they added. Soyoil futures erased early gains to end steady tracking flat Malaysian market.

The June soy contract NSBM0 on the NCDEX ended up 0.53% at Rs1,995.5 per 100kg, while the June soyoil contract NSOM0 rose 0.04% to Rs453.40 per 10kg.

Malaysian palm oil futures barely moved on Monday as concerns over the euro zone debt crisis could hit world economic recovery offset expectations of robust export growth for the vegetable oil.

Meanwhile, US soy futures also rose, ahead of the USDA releasing its weekly crop condition and planting progress report that is likely to show rain slowed soy seeding in the US Midwest.

At the Indore spot market in top producer Madhya Pradesh, soy edged up by Rs5 to Rs1,970, and soyoil rose Rs1.85 to Rs450.85.

The June rapeseed contract NRSM0 climbed 0.42% at Rs514.05 per 20kg on an estimated drop in the output.

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

In the Jaipur spot market in Rajasthan, the country's top rapeseed producing state, the price jumped by Rs5.50 to Rs507.20 per 20kg. But a drop in meal exports weighed on sentiments, analysts said.

India's April oilmeal exports slumped 14.35% from a year earlier, falling for the sixth straight month, on low domestic crushing and as a strengthening rupee weakened demand from Vietnam and China, a trade body said.