Indian soybeans drop; rapeseed rises on cold wave

January 1, 2014

MUMBAI, Jan 1 (Reuters) - Indian soybean futures eased on Wednesday, following a similar trend overseas, while rapeseed rose on concerns cold wave in the northern part of the country could trim yield per hectare.

* U.S. soybean futures fell to their lowest level in a month on Tuesday on end-year liquidation and improving prospects for a bumper South American crop, traders said.

* At 0837 GMT, the key January soybean contract was down 0.59 percent at 3,796.50 rupees ($61.38) per 100 kg on the National Commodity and Derivatives Exchange (NCDEX).

* "The overnight drop in U.S. soybean futures pulled local market lower. The downside is limited as supplies are coming down in spot markets," Suneel Kumar Gunturi, an analyst at Emkay Commotrade Ltd.

* The January soyoil contract fell 0.23 percent to 696.50 rupees per 10 kg, while the rapeseed contract for January rose 0.54 percent to 3,540 rupees per 100 kg.

* "Rapeseed got a boost due to unfavourable weather in northern India. If weather remains unfavourable, we can see further upside to 3,620 rupees in the January contract," Gunturi said.

* Cold wave conditions are prevailing over some parts of Rajasthan, the top rapeseed producer, the weather department said on Wednesday.

* Indian farmers had cultivated rapeseed on 6.75 million hectares as of Dec. 19, compared with 6.36 million hectares a year earlier.

* At the Indore spot market in Madhya Pradesh state, soybeans fell 10 rupees to 3,878 rupees per 100 kg, while soyoil eased 0.05 rupee to 697.40 rupees per 10 kg. At Jaipur in Rajasthan, rapeseed rose 7 rupees to 3,650 rupees. ($1 = 61.8550 rupees) (Reporting by Rajendra Jadhav; Editing by Anand Basu)