“Demand for soyabeans is weak from oil millers. Exports demand for soyameal is weak and it seems it will remain subdued due to higher soyabean prices,” said Nalini Rao, an analyst at India Infoline Ltd. 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 soyabean contract on the National Commodity and Derivatives Exchange dropped 1.29 percent to 3,861 rupees per 100 kg. A weak rupee, which makes edible oil imports expensive and also raises returns of oilmeal exporters, limited the downside. The local currency was down.
The key June soyaoil contract was down 0.30 percent at 689.60 rupees per 10 kg, while the rapeseed contract for June edged down 0.15 percent to 3,434 rupees per 100 kg. At the Indore spot market in Madhya Pradesh, soyaoil eased 0.55 rupee to 723.60 rupees per 10 kg, while soyabeans edged down 9 rupees to 4,030 rupees per 100 kg. At Jaipur in Rajasthan, rapeseed eased 2 rupees to 3,406 rupees. Rapeseed output is estimated to have risen about 22 percent on year to 7.15 million tonnes in 2012-13, a trade body said.