Indian oilseeds, soyoil rise on thin supply, global cues

Reuters

MUMBAI, Dec 23 (Reuters) - Indian oilseeds and soyoilfutures rose on Monday following gains in overseas prices andthin supplies in local spot markets, though a strong rupeecapped the upside.

* U.S. soybean futures rose for a second session on Monday,extending two-day gains to more than 1 percent, as dry weatherin Argentina threatens production.

* Malaysian palm oil futures rose, stretching gains into athird straight day as the ringgit's poor performance stokeddemand from overseas buyers.

* At 0844 GMT, the key January soybean contract onthe National Commodity and Derivatives Exchange was up 0.49percent at 3,892.50 rupees ($62.64) per 100 kg, while theJanuary soyoil jumped 0.6 percent to 700.10 rupees per10 kg.

* "Soybean supplies are falling in spot markets. Farmers arenot interested in selling beans at lower levels," said FaiyazHudani, associate vice-president, research, at Kotak CommodityServices Ltd.

"The market is keenly watching the weather in south America.Any drop in soybean output there would increase demand forIndian soymeal."

* High temperatures and a lack of rain forecast for thecoming days in Argentina's farm belt will hurt the 2013/14 soycrop, the agriculture ministry said on Friday.

* A strong rupee makes edible oil imports cheaper, and trimsreturns of oilmeal exporters. The rupee rose on Monday.

* The rapeseed contract for January was up 0.25percent at 3,682 rupees per 100 kg.

* Indian farmers had cultivated rapeseed on 6.75 millionhectares as on Dec. 19, compared with 6.36 million hectares ayear earlier.

* At the Indore spot market in Madhya Pradesh state,soybeans rose 41 rupees to 3,965 rupees per 100 kg, while soyoiljumped 7.70 rupees to 699.65 rupees per 10 kg. At Jaipur inRajasthan state, rapeseed edged up 36 rupees to 3,686 rupees.

* India's soybean production in 2013/14 could fall by nearly14 percent from a year ago to 9.5 million tonnes due to cropdamage, an executive with the country's top soybean processorsaid. ($1 = 62.1400 Indian rupees) (Reporting by Rajendra Jadhav; Editing by Prateek Chatterjee)

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