India soybean down; soyoil rises on festive demand

MUMBAI, Sept 13 | Mon Sep 13, 2010 1:48pm IST

(Reuters) - Indian soybean futures eased on Monday afternoon on expectations of a bumper output of summer-sown oilseeds, though soyoil was trading higher on firm palm oil and festive demand, analysts said.

"The market is expecting higher production of soybean and other kharif oilseeds this year due to higher area," said an analyst at Religare Commodities Ltd.

"There are some concerns about excessive rains. If Madhya Pradesh and Maharashtra get more rains in this week, then there might be some impact on output," he said.

Heavy rains over India's key cotton and soybean growing areas in the past three weeks are set to delay harvesting of crops and could even trim yields in a few pockets, industry officials said.

At 1:42 p.m., October soyoil NSOV0 on India's National Commodity and Derivatives Exchange (NCDEX) was up 0.03 percent at 490.7 rupees per 10 kg.

Malaysian crude palm oil futures rose 0.6 percent on Monday after a long weekend holiday, on encouraging economic data from China, although prospects of a bumper U.S. soy crop weighed.

October soybean NSBV0 on NCDEX fell 1.03 percent to 2,059 rupees per 100 kg, while rapeseed NRSV0 for October delivery rose 0.41 percent to 546.25 rupees per 20 kg.

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.

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.