February 9, 2010

Indian soy and soyoil futures seen extending gains

India's soy, soyoil and rapeseed futures are likely to extend the previous session's gains on Tuesday, boosted by firm overseas markets and a likely fall in the main winter oilseed crop, analysts said.

However, weak meal exports could limit the upside.

India's rapeseed output may fall an annual 4.8% in 2010 to 5.9 million tonnes, a leading trade body said late last week, as the world's fourth-biggest producer of the crop suffered its worst monsoon in nearly three decades.

The benchmark March palm contract KPOc3 on the Bursa Malaysia Derivatives Exchange was trading 0.39% higher at MYR2,560 per tonne at 9:42 a.m.

The soy March contract NSBH0 on the National Commodity and Derivatives Exchange last ended up 1.69% at Rs2,135 per 100 kg, while March soyoil NSOH0 finished 1.32% percent higher at Rs468.05 per 10 kg.

The rapeseed April contract NRSJ0 last ended 1.12% higher at Rs487.8 per 20 kg.

India's January oilmeal exports slumped 32% from a year earlier, falling for the third straight month, due to weak demand from Vietnam, South Korea, Indonesia, Japan and Thailand, a trade body said.