Indian oilseeds and soyaoil futures rose on Friday tracking gains in overseas prices and on a weak rupee, though subdued exports demand for oilmeal and ample supplies of edible oils weighed on sentiment. At 0835 GMT, the benchmark Malaysian palm oil contract was up 1.62 percent at 2,324 ringgit per tonne, while US soyabeans were higher 0.18 percent at $14.94 per bushel, after rising 0.8 percent in the previous session.
“Traders are waiting for USDA reports. It will determine the short-term trend. The continuous depreciation of the rupee is supporting oilseeds and edible oils,” said Prasoon Mathur, a senior analyst with Religare Commodities. The US Department of Agriculture is scheduled to release its first official US 2013 production forecasts for soyabean and other crops at 1600 GMT.
A weak rupee, which makes edible oil imports expensive and also raises returns of oilmeal exporters, supported the upside. The currency hit a more than three-week low. The key June soyabean contract on the National Commodity and Derivatives Exchange rose 0.81 percent to 3,898 rupees per 100 kg.
India’s soyameal exports in April sank 67 percent from a month ago to 99,451 tonnes, dropping for a third straight month as farmers held back stocks in a move that tightened supply and boosted prices of the animal feed. The key June soyaoil contract was up 0.61 percent at 694.90 rupees per 10 kg, while the rapeseed contract for June rose 0.26 percent to 3,462 rupees per 100 kg. At the Indore spot market in Madhya Pradesh, soyaoil edged up 3.15 rupees to 725.05 rupees per 10 kg, while soyabeans rose 23 rupees to 4,044 rupees per 100 kg. At Jaipur in Rajasthan, rapeseed rose 11 rupees to 3,425 rupees.