India oilseeds drop on rainfall; soyoil flat
Category: Oilseeds
(Reuters) – India’s oilseeds futures dropped on Tuesday following good rainfall in oilseeds growing areas, though a rise in the U.S. soybean market and thin availability of stocks at spot markets restricted the downside.
Soyoil futures were steady as an improvement in spot demand for edible oils due to festivals outweighed a fall in Malaysian palm oil prices.
Chicago soybeans climbed to a record high on Tuesday as falling exports from Brazil highlighted the decline in global supplies after poor production in South America and a historic drought in the United States.
The benchmark November 2012 contract on the Bursa Malaysia Derivatives Exchange fell 0.98 percent to 3,043 ringgit per tonne by 0827 GMT.
The October soyoil contract on India’s National Commodity and Derivatives Exchange was down 0.07 percent at 806.8 rupees per 10 kg, after hitting a record high of 821.2 rupees last week.
The October soybean contract fell 0.56 percent to 3,996 rupees per 100 kg, while rapeseed eased 0.97 percent to 4,404 rupees per 100 kg, after hitting a high of 4,613 rupees last week.
“Rainfall deficit in Rajasthan has come down sharply due to rainfall in last 4-5 days. It will ensure higher area under rapeseed as its prices are trading near record high level,” said an official at Solvent Extractors’ Association of India (SEA).
Sowing of rapeseed starts from October and north-western Rajasthan is the top producing area in the country.
Soybean production in 2012 is likely to be more than last year but heavy rainfall in central India remains a concern, the SEA official said.
Many parts of soybean growing areas got significantly higher rainfall on Monday and more heavy rains this week can hurt yields, dealers said.
Indian farmers have grown soybean on 10.69 million hectares as of Aug. 30, compared with 10.31 million hectares a year earlier, farm ministry data showed.
At the Indore spot market in Madhya Pradesh, soyoil climbed 5.1 rupees to 797.85 rupees per 10 kg, while soybean rose by 5 rupees to 4,552 rupees per 100 kg. In Sri Ganganagar in Rajasthan, rapeseed edged up 25 rupees to 4,365 rupees per 100 kg. (Reporting by Rajendra Jadhav; Editing by Gopakumar Warrier)
