Indian soybean hits 2-week high on wet weather; soyoil rises

Reuters

MUMBAI, Sept 30 (Reuters) - Indian soybean futures jumpedmore than 2 percent on Monday to hit their highest level in twoweeks on a weak rupee, lower supplies in spot markets andconcerns over heavy rainfall in top producing states.

* Soyoil and rapeseed rose on a likely rise in edible oildemand during the key festivals in the next two months.

* "In spot markets supplies are lower-than expected. In suchsituation if Madhya Pradesh receives more rainfall, thencertainly supplies will remain constrained in the next fewdays," said Nalini Rao, an analyst at India Infoline Ltd.

* "Rains can even damage crop that is ready for harvesting."

* The central state of Madhya Pradesh is likely to receiveheavy showers in the next three days, weather department said onMonday.

* At 0825 GMT, the key October soybeans contract was2.19 percent up at 3,520 rupees ($56.23) per 100 kg on theNational Commodity and Derivatives Exchange, after hitting ahigh of 3,530 rupees earlier in the day.

* A weak rupee makes edible oil imports expensive, butincreases returns of oilmeal exporters. The rupee eased onMonday.

* 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 October soyoil contract was 1.58 percenthigher at 683.50 rupees per 10 kg, while the rapeseed contractfor October edged up 0.79 percent to 3,583 rupees per100 kg.

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

* At the Indore spot market in Madhya Pradesh, soybeansedged up 16 rupees to 3,507 rupees per 100 kg, while soyoil rose5.75 rupees to 679.65 rupees per 10 kg. At Jaipur in Rajasthan,rapeseed nudged up 5 rupees to 3,647 rupees.

* Malaysian palm oil futures edged lower on Monday, trackingfalls in the United States and Chinese soy markets, but a weakerringgit curbed losses and locked prices in a tight range. ($1 = 62.6 Indian rupees) (Reporting by Rajendra Jadhav; Editing by Anand Basu)

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