Indian oilseeds, soyoil jump on global cues, weak rupee

Reuters

MUMBAI, Sept 3 (Reuters) - Indian oilseeds and soyoilfutures jumped on Tuesday on gains in the world market, a weakrupee and an expected rise in edible oil demand in the comingweeks due to festivals.

* U.S. soybeans rose more than 3 percent as updated weathermodels forecast a hot, dry weather across the Midwest, raisingfears of potential yield loss.

* "Dry weather is fuelling a price rally in overseasmarkets. The continuous depreciation of the rupee is givinglocal oilseeds markets a further boost," said Prerna Sharma, ananalyst at Emkay Commotrade Ltd.

* "In the coming weeks, even if we see a sharp rise in worldprices, local prices may rise modestly. Supplies from the newseason soybean crop are likely to start in a fortnight. Weatheris dry in Madhya Pradesh," Sharma said.

* At 0904 GMT, the key October soybean contract wasup 4.01 percent at 3,564 rupees per 100 kg on the NationalCommodity and Derivatives Exchange.

* 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.

* The key September soyoil contract jumped 2.68percent to 713.45 rupees per 10 kg, while the rapeseed contractfor September rose 2.05 percent to 3,632 rupees per 100kg.

* A weak rupee makes edible oil imports expensive, butraises returns of oilmeal exporters. The rupee slid a littlecloser on Tuesday to a record low struck against the dollar lastweek.

* 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.

* As of Aug. 29, soybean cultivation took up 12.18 millionhectares in India compared with 10.68 million hectares a yearearlier, farm ministry data showed last week. (Reporting by Rajendra Jadhav; Editing by Subhranshu Sahu)

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