India oilseeds, soyoil drop on soybean supplies, strong rupee

Reuters

(Repeats to wider audience without changes to text)

MUMBAI, Sept 10 (Reuters) - Indian oilseeds and soyoilfutures fell on Tuesday on rising soybean supplies in local spotmarkets, a drop in edible oil prices overseas and a strongrupee.

* U.S. soybeans fell on Tuesday, extending their losses thisweek to more than 1.5 percent, as traders squared positionsahead of the next U.S. Department of Agriculture productionforecast, while Malaysian palm oil futures fell to the lowest inmore than two weeks.

* "Soybean supplies are rising in the local spot market. Inthe next fortnight there would be a significant rise insupplies," said Prasoon Mathur, a senior analyst with NewDelhi-based brokerage Religare Commodities.

"The strong rupee and a drop in overseas market are alsodepressing sentiment."

* At 0817 GMT, the key October soybean contract wasdown 1.56 percent at 3,418.50 rupees per 100 kg on the NationalCommodity and Derivatives Exchange.

* The key October soyoil contract fell 1.61 percentto 664.80 rupees per 10 kg, while the rapeseed contract forOctober dropped 1.54 percent to 3,517 rupees per 100 kg.

* A strong rupee makes edible oil imports cheaper, but trimsreturns of oilmeal exporters. The Indian rupee rose to atwo-week high as expectations of a narrower trade deficit andreceding concerns about Syria helped the currency continue itsrecent recovery from record lows hit last month.

* At the Indore spot market in Madhya Pradesh, soyoil wasdown 10.65 rupees at 683.05 rupees per 10 kg, while soybeansdropped 51 rupees to 3,526 rupees per 100 kg. At Jaipur inRajasthan, rapeseed fell 43 rupees to 3,616 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 month.

* India's soymeal exports in August rose about threequarters from a month earlier as a weak rupee made shipmentsmore competitive and demand from Europe picked up. (Reporting by Rajendra Jadhav; Editing by Jijo Jacob)

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