Indian oilseeds, soyoil drop on global cues, strong rupee

Reuters

MUMBAI, Oct 1 (Reuters) - Indian oilseed and soyoil futuresfell on Tuesday on a sharp drop in overseas prices, a strongrupee and expectations of an increase in supplies from the newseason soybean crop next week onwards.

* Chicago soybeans slid to a six-week low on Tuesday, aftera U.S. report showed higher-than-expected stocks as harvest ofnear-record crops gathers pace. Palm oil futures fell, followinglosses in soybean.

* "Today, the market is more influenced by overseasdevelopments than local fundamentals," said Faiyaz Hudani, asenior research analyst at Kotak Commodity Services Ltd.

"The recovery in the rupee is also weighing on sentiment. Inthe next few days, supplies of soybeans in local spot marketswill remain a crucial factor. If the weather becomes dry inMadhya Pradesh, we could see higher supplies."

* At 0743 GMT, the key November soybean contract wasdown 1.27 percent at 3,512 rupees ($56.37) per 100 kg on theNational Commodity and Derivatives Exchange.

* A strong rupee makes edible oil imports cheaper, but trimsthe returns of oilmeal exporters. The rupee rose on Tuesday.

* India could export as much as 5 million tonnes of soymealin the year from Oct. 1, 2013, a rise of about 25 percent on theprevious year, as Asia's top exporter of the animal feed findsstrong demand from Iran and Thailand.

* The key November soyoil contract was 0.64 percentlower at 676.70 rupees per 10 kg, while the rapeseed contractfor November fell 0.71 percent to 3,615 rupees per 100kg.

* India will celebrate festivals such as Dussehra and Diwaliin the next few weeks, when typically edible oil consumptionrises.

* At the Indore spot market in Madhya Pradesh, soybeans fell18 rupees to 3,493 rupees per 100 kg, while soyoil rose 0.55rupee to 683.40 rupees per 10 kg. At Jaipur in Rajasthan,rapeseed edged down 13 rupees to 3,639 rupees. ($1 = 62.3 Indian rupees) (Reporting by Rajendra Jadhav; Editing by Anupama Dwivedi)

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