(Reuters) – Indian soybean futures edged higher on Friday on a weak rupee and thin supplies due to a drop in production, while rapeseed rose on bargain buying.
Soyoil edged lower, following losses in Malaysian palm oil that shed nearly 0.4 percent.
India’s soybean production in 2013/14 could fall by nearly 14 percent from a year ago to 9.5 million tonnes due to crop damage, an executive with the country’s top soybean processor said.
At 0810 GMT, the key January soybean contract on the National Commodity and Derivatives Exchange was up 0.22 percent at 3,833 rupees ($61.69)per 100 kg, while the January soyoil eased 0.18 percent to 688.15 rupees per 10 kg.
“The weakening trend in the rupee and lower supplies of soybeans in spot markets have been key supportive forces,” said Tushar Rathod, a senior analyst at ADMISI Commodities Pvt. Ltd.
A weak rupee makes edible oil imports expensive, and raises returns of oilmeal exporters. The rupee eased on Friday.
The rapeseed contract for January was up 0.28 percent at 3,618 rupees per 100 kg.
Indian farmers had cultivated rapeseed on 6.65 million hectares as on Dec. 12, compared with 6.36 million hectares a year earlier.
At the Indore spot market in Madhya Pradesh, soybeans rose 31 rupees to 3,905 rupees per 100 kg, while soyoil climbed up 2.90 rupees to 693.20 rupees per 10 kg. At Jaipur in Rajasthan, rapeseed edged up 8 rupees to 3,640 rupees. ($1 = 62.1350 Indian rupees)
