India oilseeds seen down on rainfall, stocks

Jul 5 2010 9:37AM


MUMBAI, July 5 (Reuters) - Indian oilseeds and soyoil futures are likely to ease on Monday on weakness in Malaysian palm oil and on good rainfall over the weekend in the main soybean growing region, analysts said.

The July soybean contract on the National Commodity and Derivatives Exchange ended down 0.84 percent at 1,898 rupees per 100 kg, while the July soyoil eased 0.33 percent to 441.2 rupees per 10 kg.

July rapeseed edged down 0.45 percent to 518.95 rupees per 20 kg.

The central state of Madhya Pradesh, biggest producer of soybean in the country, which witnessed rains over the weekend is likely to get more rains in next two days, the weather department said late on Sunday.

Sowing operations are usually accelerated with the appearance of good rainfall.

Malaysian crude palm oil futures were trading 0.4 percent lower at 9:34 a.m.

A drop in meal exports and higher oilseeds stocks are also likely to weigh on prices, they said.

A record 12.5 million tonnes of oilseeds are still lying uncrushed, Solvent Extractors' Association said last week.

Indian soymeal prices have slid around 5 percent in the last two weeks as farmers and traders are selling their oilseed reserves ahead of sowing for the new crop, traders said last week