Indian rapeseed hits 9-month high on demand; soyoil firm

Reuters

MUMBAI, Oct 28 (Reuters) - Indian rapeseed futures jumpedtwo percent on Monday to their highest level in more than ninemonths on good demand in spot markets from stockists ahead ofthe winter season.

* Soybeans and soyoil also rose on thin supplies and gooddemand due to a festival.

* At 0807 GMT, the rapeseed contract for November onthe National Commodity and Derivatives Exchange was up 2.24percent at 3,795 rupees ($61.61) per 100 kg. It jumped to 3,798rupees earlier in the day, the highest level since Jan. 18.

* "In spot markets, oil mills are actively buying rapeseedfor the winter season. Supplies are moderate and likely to comedown in the coming weeks," said Nalini Rao, an analyst withIndia Infoline.

* Rapeseed oil consumption usually rises in India during thewinter season.

* The key November soybean contract rose 1.95percent to 3,797.50 rupees per 100 kg, while the key Novembersoyoil contract was up 1.49 percent at 730.70 rupees per10 kg.

* Soybean supplies have risen in spot markets but are lowerthan usual as rainfall in the last few weeks disruptedharvesting, Rao said.

* India's soybean production in 2013/14 is likely to drop by4.4 percent from the previous year to 10.23 million tonnes afterheavy rains in growing areas during the harvest season damagedthe crop.

* India will celebrate the Hindu festival of Diwali in thefirst week of November. Demand for edible oil usually risesahead of the festival.

* At the Indore spot market in Madhya Pradesh, soybeans wereup one rupee at 3,684 rupees per 100 kg, while soyoil rose by0.85 rupee to 724.40 rupees per 10 kg. At Jaipur in Rajasthan,rapeseed jumped 31 rupees to 3,800 rupees.($1 = 61.5950 Indian rupees) (Reporting by Rajendra Jadhav; Editing by Anupama Dwivedi)

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