India oilseeds, soyoil drop on global cues, rupee rebound

Reuters

MUMBAI, Sept 4 (Reuters) - Indian oilseeds and soyoilfutures fell on Wednesday due to a recovery in the rupee, dropin overseas oilseeds prices and on favourable local weatherconditions.

* U.S. soybeans fell nearly 1 percent on Wednesday, losinghalf of the gains from the previous session, as traders tookprofits after a U.S. Department of Agriculture report showedcrop damage was no worse than expected.

* "Local market is beaten-down by strong rupee and losses inthe U.S. market," said Faiyaz Hudani, a senior research analystat Kotak Commodity Services Ltd.

* "Domestic fundamentals are slowly becoming bearish asweather has improved in soybean growing areas and supplies fromthe new season crop should start in next 15 days," Hudani said.

* At 0829 GMT, the key October soybean contract wasdown 0.11 percent at 3,560 rupees per 100 kg on the NationalCommodity and Derivatives Exchange.

* As of Aug. 29, soybean was cultivated in 12.18 millionhectares in India compared with 10.68 million hectares a yearearlier, farm ministry data showed last week.

* The key October soyoil contract fell 1.48 percentto 691.60 rupees per 10 kg, while the rapeseed contract forOctober dropped 1.36 percent to 3,639 rupees per 100 kg.

* A strong rupee makes edible oil imports cheaper, but trimsreturns of oilmeal exporters. The Indian rupee staged a sharprecovery on Wednesday after suspected heavy dollar selling bythe central bank.

* At the Indore spot market in Madhya Pradesh, soyoil was up3.80 rupees at 702.95 rupees per 10 kg, while soybeans eased 3rupees to 3,543 rupees per 100 kg. At Jaipur in Rajasthan,rapeseed jumped 37 rupees to 3,718 rupees.

* India has sold 350,000 tonnes to 400,000 tonnes ofnew-crop soymeal for shipment between October and December onprospects of higher soybean production and a weak rupee, anindustry official said last week. (Reporting by Rajendra Jadhav; Editing by Anand Basu)

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