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India soybean ends up on bargain-buying, demand.


Date: 03-02-2010
Subject: India soybean ends up on bargain-buying, demand

MUMBAI, Feb 2 (Reuters) - India's soybean futures rose on Tuesday on bargain hunting prompted by slight improvement in spot demand and firmness in other agriculture commodities, analysts said.

"Lower level buying is pushing up prices, but fundamentals are still weak. Meal exports are not improving and market is anticipating higher production in Brazil and Argentina," said an analyst at Angel Commodities Broking Pvt Ltd.

India's oilmeal exports slumped 44 percent to 395,663 tonnes in December from 708,631 tonnes a year earlier, a leading trade body said last month. See [ID:nBMA006705]

At Indore spot market in top producer Madhya Pradesh state, soybean prices edged higher by 20 rupees to 2,062 rupees per 100 kg.

The February contract NSBG0 on the National Commodity and Derivatives Exchange ended up 0.8 percent at 2,088.5 rupees per 100 kg, after shedding nearly 14 percent in January on weak meal exports.

Malaysian crude palm oil futures rebounded from morning losses to end 0.29 percent higher on Tuesday, but trading was quiet as market participants factored in strong export data for January, released the day before. See [ID:nSGE611071]

Soybean is crushed to produce soyoil and soymeal. Soyoil and palm oil prices usually move in tandem as both are used as cooking oil.

Source : REUTERS


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