Soybean, soyoil rise on global cues, demand.

MUMBAI: Indian soybean and soyoil futures extended the previous session's gains on Friday, bolstered by rallying overseas markets that prompted millers to raise spot purchases, analysts said. U.S. July soybeans futures ended up 19-½ cents, or 2 percent, at $10.12-½ on Thursday, supported by adverse weather in the U.S.

Midwest where more rainfall is expected this week would add to already soaked fields. Malaysian crude palm oil rose 1.22 percent by midday Friday, tracking strong crude oil and soybean markets, but worries of an inventory pile-up kept a lid on gains.

"Rising global markets are giving support to domestic oilseed complex. Millers have raised purchases in spot market in last few days," Mehul Agrawal, an analyst at Sharekhan Commodities, said. The August soybean contract on the National Commodity and Derivatives Exchange was up 0.36 percent at 1,935 rupees per 100 kg, while soyoil rose 0.03 percent to 449.70 rupees per 10 kg.

In the Indore spot market, soybean rose by 11 rupees to 1,902 rupees per 100 kg, while soyoil rose 2.25 rupees to 443.35 rupees per 10 kg. The August rapeseed contract was down 0.03 percent at 524.30 rupees per 20 kg. In the Jaipur spot market in Rajasthan, the country's top rapeseed producer, the price edged up by 0.40 rupee to 513.60 rupees for 20 kg.

Good rainfall in soybean growing areas, a drop in meal exports coupled with higher stocks weighed on prices, they said. India's June oilmeal exports slumped 20 percent from a year earlier, falling for the eighth straight month, on low domestic crushing and reduced demand from southeast Asia, a leading trade body said on Wednesday.

All soybean producing states in the country received good rains in the past one week and are likely to get more in the next two days, the weather department said on Friday. A record 12.5 million tonnes of oilseeds are still lying uncrushed, Solvent Extractors' Association said last week.

Source : Economic Times