India soyoil drops on weak demand; soybean higher

August 29th, 2012

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Category: Oilseeds

(Reuters) – India’s soyoil futures fell on Wednesday on weak demand and a drop in Malaysian palm oil prices, while rapeseed was steady as good rainfall in key growing areas offset thin supplies.

Soybean futures edged higher, tracking a rise in the world market, though higher area under cultivation weighed on sentiments.

Malaysian palm oil futures were down 1.32 percent at 2,990 ringgit per tonne by 0839 GMT, while U.S. soybean rose 0.73 percent to $17.34-3/4 per bushel.

“Rajasthan received very good rainfall in the past few days. It will help sowing beginning from October,” said Prasoon Mathur, a senior analyst with Religare Commodities.

North-western Rajasthan state is the top rapeseed producer in the country.

The October soyoil contract on India’s National Commodity and Derivatives Exchange was down 0.36 percent at 800.3 rupees per 10 kg, after hitting a record high of 821.2 rupees earlier this week.

The October soybean contract rose 0.68 percent to 4,027 rupees per 100 kg, while rapeseed was steady at 4,500 rupees per 100 kg, after hitting a record high of 4,613 rupees earlier this week.

Farm newsletter Pro Farmer said the United States is likely to produce lower soybeans than forecast by the U.S. Department of Agriculture as the worst drought in the U.S. Midwest in 56 years hurt the crop.

At the Indore spot market in Madhya Pradesh, soyoil fell 4.45 rupees to 789.2 rupees per 10kg, while soybean fell by 40 rupees to 4,516 rupees per 100 kg.

Indian farmers have cultivated soybean on 10.68 million hectares as on Aug. 23, compared with 10.27 million hectares at the same time a year earlier, farm ministry data showed. (Reporting by Rajendra Jadhav; Editing by Anand Basu)

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