(Reuters) – Indian soybean futures rose on Monday on fresh buying support as millers’ demand for the oilseed improved in spot markets due to a gain in the rupee that made soymeal exports attractive.
India is Asia’s leading supplier of soymeal, preferred by buyers in South Korea, Japan, Thailand, Vietnam and Iran for being free from genetic modification. Soymeal is derived from soybeans after processing cooking oil.
India’s soymeal exports last month jumped almost three-fold from October as supplies of the animal feed improved after newly harvested soybeans arrived for crushing.
Soybean futures received support from a gain in the rupee as strength in the currency promises better returns from soymeal exports. The rupee hit a four-month high on Monday.
Overseas sentiment in soybean also helped the buying in domestic soybean futures.
“An expectation that the U.S. Department of Agriculture’s next report would show a drop in global carry over stocks for soybean has helped the buying in local futures,” said Indornil Mukherjee, analyst with Religare Commodities.
USDA’s World Agricultural Supply and Demand Estimates report will be released on Tuesday.
At 0903 GMT, the key January soybean contract on the National Commodity and Derivatives Exchange was up 1.8 percent at 3,835 rupees ($62.22) per 100 kg.
Soyoil futures traded higher, reflecting the sentiment in rival palm oil in overseas markets.
Malaysian palm oil futures rose to their highest in more than two weeks in early trade on concerns that floods could cut supplies in the world’s No. 2 producer.
The key January soyoil rose 0.6 percent to 713 rupees per 10 kg.
Rapeseed futures traded down on satisfactory sowing progress of the main winter oilseed crop.
Indian farmers had sown rapeseed on 6.42 million hectares as on Dec. 5, compared with 6.08 million hectares a year earlier.
The rapeseed contract for January was down 0.4 percent at 3,719 rupees per 100 kg.
At the Indore spot market in Madhya Pradesh, soybeans rose 23 rupees to 3,881 rupees per 100 kg, while soyoil increased by 3 rupees to 603.8 rupees per 10 kg. At Jaipur in Rajasthan, rapeseed was down about 2 rupees to 3,804 rupees.
