Indian soybeans hit 6-week peak; soyoil touches 1-month high

October 9, 2013

MUMBAI, Oct 9 (Reuters) - Indian soybean futures rose on Wednesday to their highest level in six weeks on tight supplies in spot markets as heavy rainfall disrupted harvesting of the oilseed.

* Soyoil futures hit a one-month high on good demand and gains in Malaysian palm oil. Rapeseed rose, following gains in edible oil prices.

* Malaysian palm oil futures climbed to their highest in four weeks on Wednesday as investors bet a key industry report may show palm stocks and output growth in September were smaller than initially anticipated.

* "Soybean harvesting is not progressing as per expectations. The crop is wet in Madhya Pradesh due to rains in the last one week. Unless it becomes dry, farmers can't hasten harvesting," said Nalini Rao, an analyst at India Infoline Ltd.

* The eastern part of Madhya Pradesh state, the country's top soybean producer, received 570 percent more rainfall than normal on Tuesday. The rains are likely to ease in the state in the next one week, the weather department said on Wednesday.

* At 0822 GMT, the key November soybean contract was up 0.67 percent at 3,627 rupees ($58.63) per 100 kg on the National Commodity and Derivatives Exchange. The contract earlier rose to 3,643 rupees, the highest since Aug. 28.

* A weak rupee makes edible oil imports expensive, but raises the returns of oilmeal exporters. The rupee eased on Wednesday.

* India could export as much as 5 million tonnes of soymeal in the year from Oct. 1, 2013, a rise of about 25 percent on the previous year, as Asia's top exporter of the animal feed finds strong demand from Iran and Thailand.

* The key November soyoil contract was 1.05 percent higher at 696 rupees per 10 kg, after rising to 700 rupees earlier in the day, the highest level since Sept. 4.

* The rapeseed contract for November edged up 1.28 percent to 3,677 rupees per 100 kg.

* In the next few weeks, India will celebrate festivals such as Dussehra and Diwali, when edible oil consumption typically rises.

* At the Indore spot market in Madhya Pradesh, soybeans jumped 40 rupees to 3,586 rupees per 100 kg, while soyoil rose 10 rupees to 705.70 rupees per 10 kg. At Jaipur in Rajasthan, rapeseed edged up 24 rupees to 3,688 rupees.

* India's soymeal exports surged to 173,381 tonnes in September from 6,525 tonnes a year ago. ($1 = 61.8650 Indian rupees) (Reporting by Rajendra Jadhav; Editing by Anupama Dwivedi)