| Date: |
10-09-2010 |
| Subject: |
Oilseeds, soyoil drop on higher crop hopes |
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MUMBAI: Indian oilseed and soyoil futures eased on Thursday afternoon, tailing a drop in the U.S. market and expectations of better output of local summer-sown oilseeds due to higher acreage, analysts said.
"Soybean crop is in a good shape. We are expecting higher production. Rainfall was good, but it should stop now. Otherwise it will create problems," said Radha Vallabhaji Purohit, a Nagpur-based trader.
The soybean crop is maturing in most parts of country, requiring dry weather. But key growing areas like Madhya Pradesh, Maharashtra and Rajasthan have been getting rains, which could hurt the crop.
India's vital monsoon rains were 26 percent above normal in the week to Sept. 8, compared with 16 percent above normal in the previous week, the weather office said on Thursday.
As on Sept. 2, area under oilseeds in the world's biggest edible oil importer stood at 16.94 million hectares, compared with 16.36 million hectares a year ago, farm ministry data showed.
U.S. soybean futures were trading down 0.74 percent while Malaysian crude palm oil futures fell 1.12 percent at 2:12 p.m.
The October soyoil on India's National Commodity and Derivatives Exchange (NCDEX) was down 0.67 percent at 491.7 rupees per 10 kg.
October soybean on NCDEX fell 0.34 percent to 2,082 rupees per 100 kg, while rapeseed for October delivery eased 0.48 percent to 546 rupees per 20 kg.
But a jump in oilmeal exports in August and widely hoped improvement in edible oil demand during festivals in India during Aug-Nov limited the losses, analysts said.
The country's oilmeal exports in August rose 14 percent from a year earlier, its second straight monthly rise, on higher demand from traditional buyers in Japan and China, data from a trade body showed on Tuesday.
India's soybean output in 2010/11 is likely to top last year's and meal exports from the new crop are likely to rise significantly as lower bean prices are seen giving edge to Indian exporters, a senior industry official said.
Source : economictimes.indiatimes.com
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