MUMBAI, Sept 3 | Fri Sep 3, 2010 2:15pm IST
Indian soyoil futures broke a four-day losing streak on Friday on bargain-buying driven by firmness in palm oil and hopes the festival season will lift demand for edible oils, analysts said.
Futures were weak in past four days on higher supplies due to increased imports and a rise in soybean crushing.
Soybean and rapeseed rose on expectations of a rise in meal exports in the coming months.
"Traders are expecting fresh soymeal export deals to happen this month. Indian prices are very competitive," said Veeresh Hiremath, senior analyst with Karvy Comtrade.
India is likely to export more than 400,000 tonnes of soymeal in Sept-Nov due to strong demand from Asian countries and lower bean prices, a senior industry official told Reuters. See
Malaysian crude palm oil futures climbed half a percent on Friday on short-covering ahead of the festive season, but a firmer ringgit capped gains, a trader said.
Indian market also got support from a rise in U.S. soy futures Sc2, which were up 1.02 percent at 2:09 p.m.
September soyoil NSOU0 on National Commodity and Derivatives Exchange was up 0.78 percent at 484.15 rupees per 10 kg.
Demand for edible oils usually goes up in India during Aug-Nov due to festivals such as Diwali.
Soybean farmers in Madhya Pradesh and Maharashtra, top producing states in India, have been selling stocks from last year's crop before arrivals from the current season hit the market from October onwards.
September soybean NSBU0 on NCDEX rose 1.16 percent to 2,041 rupees per 100 kg, while rapeseed NRSU0 for September climbed 0.43 percent to 529.7 rupees per 20 kg.
As on Aug. 26, area under oilseeds in the world's biggest edible oil importer stood at 16.59 million hectares, compared with 15.92 million hectares a year ago, farm ministry data showed.
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