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India oilseeds, soyoil rise as rains delay soybean supply
October 7, 2013 / 9:12 AM / 4 years ago

India oilseeds, soyoil rise as rains delay soybean supply

MUMBAI, Oct 7 (Reuters) - Indian oilseed and soyoil futures rose on Monday on gains in overseas palm oil prices, a weak rupee and as heavy rainfall in top soybean producing Madhya Pradesh state in the last four days raised concerns over supplies.

* Malaysian palm oil futures edged up in thin trade on Monday, with most investors steering clear of risky bets as they awaited an industry report on palm stocks and production in the world’s second-biggest producer.

* “In last four days Madhya Pradesh got heavy rainfall. It can damage the quality of soybean crop. It will certainly delay supplies as harvesting has been disrupted due to rains,” said Isha Trivedi, an analyst at Phillip Commodities India Pvt Ltd.

“Demand for soybean is good. Oil mills need bean to fulfil their soymeal exports obligations.”

* The eastern part of Madhya Pradesh is likely to receive more rainfall in the next two days, the weather department said on Monday.

* At 0856 GMT, the key November soybean contract was up 1.61 percent at 3,557 rupees ($57.66)per 100 kg on the National Commodity and Derivatives Exchange.

* A weak rupee makes edible oil imports expensive, but raises the returns of oilmeal exporters. The rupee fell on Monday.

* India could export as much as 5 million tonnes of soymeal in the year from Oct. 1, 2013, a rise of about 25 percent on the previous year, as Asia’s top exporter of the animal feed finds strong demand from Iran and Thailand.

* The key November soyoil contract was 1.33 percent higher at 676 rupees per 10 kg, while the rapeseed contract for November edged up 0.42 percent to 3,557 rupees per 100 kg.

* India will celebrate festivals such as Dussehra and Diwali in the next few weeks, when edible oil consumption typically rises.

* At the Indore spot market in Madhya Pradesh, soybeans eased 7 rupees to 3,527 rupees per 100 kg, while soyoil fell 8.6 rupee to 683.90 rupees per 10 kg. ($1 = 61.6900 Indian rupees) (Reporting by Rajendra Jadhav; Editing by Sunil Nair)

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