Weak rupee lifts Indian oilseeds, soyoil

MUMBAI May 25 (Reuters) - Indian oilseeds and soyoil futures rose on Tuesday as a depreciating rupee and a lower rapeseed output estimate outweighed weakness in overseas markets and a drop in meal exports, analysts said.

The June soybean contract NSBM0 on the National Commodity and Derivatives Exchange ended 1.13 percent higher at 2018 rupees per 100 kg, while the June soyoil contract NSOM0 rose 0.35 percent to 455 rupees per 10 kg.

The "weak rupee helped the market to erase bearish cues from overseas markets. Spot market was also witnessing improvement in demand," said an analyst at Religare Commodities Ltd.

India exports oilmeal and imports edible oil.

The Indian rupee on Tuesday fell to its lowest level in nearly eight months as escalating worries about the euro zone's banking system prompted investors to pull back from riskier assets and fanned strains in money markets, boosting demand for dollars across the board. See [ID:nSGE64O0D9]

At the Indore spot market in top producer Madhya Pradesh, soybean edged up by 6 rupees to 1,976 rupees, and soyoil eased 0.25 rupees to 450.60 rupees.

The June rapeseed contract NRSM0 climbed 1 percent to 519.65 rupees per 20 kg 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 in February and the actual production of 7.2 million tonnes last year, official data showed. See [ID:nSGE64B0AP]

In the Jaipur spot market in Rajasthan, the country's top rapeseed producing state, the price climbed by 2.80 rupees to 510 rupees per 20 kg.

U.S. grains and soybeans futures handed back some of the previous session's gains on Tuesday as a firmer dollar and a retreat in global stock markets led investors to flee riskier assets such as commodities. See [ID:nLDE64O16N]

India's April oilmeal exports slumped 14.35 percent 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. See [ID:nSGE6440BT]

(Reporting by Rajendra Jadhav; Editing by Ramya Venugopal)