October 14, 2010

 

Indian soy hits nine-month high on soymeal exports

India's soy futures rose to a nine-month high on Wednesday (Oct 13) as traders stepped up purchases of Indian soymeal, analysts and dealers said.

 

Soyoil hit contract highs tracking gains in Malaysian palm oil, while rapeseed also edged higher, supported by soy.

 

At 2:05 p.m., November soy futures contract <NSBX0> on India's National Commodity and Derivatives Exchange (NCDEX) was 2.28% up at INR2,241.5 (US$50.75) per 100 kg, after hitting a contract high of INR2,257.5 (US$51.11), the highest level for second month contract since January 14.

 

"Oil millers have already signed exports deals for soymeal. They are aggressively buying soybean to fulfil those contracts," said Veeresh Hiremath, a senior analyst with Hyderabad-based brokerage Karvy Comtrade.

 

US November soy <Sc1> were up 0.51% at US$11.84-½ a bushel, while Malaysia's benchmark palm futures <KPOc3> were 0.76% higher at 2,922 ringgit per tonne.

 

India's oilmeal exports in September rose 53% from a year ago, its third straight monthly rise, owing to higher demand from traditional buyers in Japan and China, data from a trade body showed.

 

In the Indore spot market, soy climbed by INR30 (US$0.68) to INR2,156 (US$48.81) per 100 kg, while soyoil rose INR2.15 (US$0.05) to INR514.5 (US$11.65) per 10 kg.

 

November soyoil <NSOX0> was up 1.58% to INR526.15 (US$11.91) per 10 kg, after hitting a contract high of INR527.9 (US$11.95) earlier in the day.

 

Rapeseed for November delivery <NRSX0> edged up 0.76% to INR560 (US$12.68) per 20 kg.

 

In the Jaipur spot market in Rajasthan, the country's top rapeseed producing state, the price edged up by INR1.1 (US$0.02) to INR551 (US$12.48) per 20 kg.

 

India is likely to produce 17.27 million tonnes of oilseeds in 2010/11 from summer-sown crops, higher than 15.66 million tonnes a year ago, the farm ministry had said last month.