(Reuters) – Indian soybean futures eased on Thursday on a likely rise in supplies from the new season crop, while soyoil jumped to its highest in seven weeks on robust demand in spot markets ahead of a festival.
Soybean supplies are likely to rise from Madhya Pradesh and Maharashtra, the country’s top two producing states, where rainfall disrupted harvesting earlier this month. The weather is dry now in both states.
“Earlier, traders were expecting higher soyoil supply from crushing of new season soybeans, but crushing was affected by rains. Mills couldn’t get enough beans,” said Prasoon Mathur, a senior analyst with brokerage Religare Commodities. He added that Diwali is driving demand now.
India will celebrate the Hindu festival of Diwali in the first week of November. Edible oil demand usually rises ahead of the festival.
At 0807 GMT, the key November soybean contract was down 0.36 percent at 3,591.50 rupees per 100 kg on the National Commodity and Derivatives Exchange.
India’s soymeal exports surged to 173,381 tonnes in September from 6,525 tonnes a year earlier.
The key November soyoil contract rose 1 percent to 707.55 rupees per 10 kg, after rising to 710.3 rupees earlier in the day, the highest level since Aug. 28.
The rapeseed contract for November rose 0.46 percent to 3,689 rupees per 100 kg.
India’s palm oil imports surged 20.6 percent in September from a month ago, rising for the first time in four months, as a recovery in the rupee encouraged refiners to buy more for the peak festival season.
At the Indore spot market in Madhya Pradesh, soybeans eased 7 rupees to 3,593 rupees per 100 kg, while soyoil in Mumbai rose 2.65 rupees to 732.40 rupees per 10 kg. At Jaipur in Rajasthan, rapeseed edged up 4 rupees to 3,725 rupees.
