India oilseeds, soyoil edge higher on festive demand

Reuters

MUMBAI, Sept 11 (Reuters) - Indian oilseed and soyoilfutures edged higher on Wednesday on good demand for edible oilsdue to the ongoing festive season, though a strong rupee andrising supplies of soybeans in spot markets capped the upside.

* "The deprecation of the rupee was one of the key reasonsbehind the rally in oilseeds. Now, since the rupee isrecovering, oilseeds, edible oils are bound to correctaccordingly," said Prerna Sharma, an analyst at Emkay CommotradeLtd.

* A strong rupee makes edible oil imports cheaper, but trimsreturns of oilmeal exporters. The Indian rupee extended gains toa fifth session on Wednesday as easing geopolitical tensions inSyria led to the cooling of global crude oil prices.

* At 0717 GMT, the key October soybean contract wasup 0.61 percent at 3,380 rupees per 100 kg on the NationalCommodity and Derivatives Exchange.

* The key October soyoil contract rose 0.48 percentto 659.60 rupees per 10 kg, while the rapeseed contract forOctober edged up 0.26 percent to 3,490 rupees per 100kg.

* 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.

* Soybean supplies have started from new season crop andthey will rise gradually in coming days, putting furtherpressure on prices, Sharma said.

* At the Indore spot market in Madhya Pradesh soybeans eased5 rupees to 3,517 rupees per 100 kg. (Reporting by Rajendra Jadhav; Editing by Jijo Jacob)

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