Indian soybean futures rise on poor spot arrivals

Reuters

NEW DELHI, Nov 6 (Reuters) - Indian soybean futures rose onWednesday on poor arrivals in spot markets, raising concernsover crop damage due to rains, while a weaker rupee pushedsoyoil up.

* Demand from soymeal processors and edible oil refinersalso supported buying in soybeans, said traders.

* Soybeans, the main summer-sown oilseed crop, are crushedto produce cooking oils and soymeal, used as animal feed.

* Rains at the start of the harvest season, during the firsthalf of October, damaged the oilseed crop, resulting in downwardrevisions in various output estimates for the crop.

* India's soymeal exports may be limited to 4 million tonnesin 2013/14, around 1 million tonnes lower than early forecasts,as rains during the harvest damaged the oilseed crop in the maingrowing areas.

* "Soybeans traded up on low spot arrivals after nearly fivedays' market closure due to Diwali celebrations," said IshaTrivedi, an analyst at Phillip Commodities India Pvt Ltd.

* She said market arrivals of the newly harvested soybeansremained less than half of their usual levels.

* Soyoil reflected the sentiment of soybeans with additionalsupport from the weakness in the rupee and festive demand.

* Soyoil, a better quality cooking medium than cheaper palmoil, is preferred for fried foods in the festival seasonstarting from October.

* The rupee crossed the 62 mark against the U.S.dollar, making soyoil imports costlier as a weaker rupee makesimports costly.

* At 1030 GMT, the key December soybean contract onthe National Commodity and Derivatives Exchange was up 2.2percent at 3,966 rupees per 100 kg.

* The key soyoil contract was up 1.3 percent at 749rupees per 10 kg.

* Rapeseed reflected the sentiment in soy complex.

* The rapeseed contract for December was up 0.9percent at 3,831 rupees per 100 kg.

* At the Indore spot market in Madhya Pradesh, soybeans rose22 rupees to 3,872 rupees per 100 kg, while soyoil was up around2 rupees to 750 rupees per 10 kg. At Jaipur in Rajasthan,rapeseed was quoted at around 3,862 rupees. (Reporting by Ratnajyoti Dutta; Editing by Subhranshu Sahu)

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