Indian soybeans hit 6-week high on tight supply; soyoil firm

Reuters

MUMBAI, Oct 8 (Reuters) - Indian soybean futures jumped morethan 2 percent on Tuesday to hit their highest level in nearlysix weeks on good demand in the spot market for new seasonsupplies that have been disrupted due to rainfall in topproducer Madhya Pradesh in the last five days.

* Soyoil and rapeseed also rose as demand for edible oilshas been growing in spot markets due to festivals.

* Malaysian palm oil futures rose to their highest in nearlythree weeks on Tuesday, posting four straight days of gains,after a market survey showed palm stocks and output in theworld's No.2 producer may be lower than initially expected.

* "Oil mills are aggressively buying in spot markets. Mostof the new season supplies are of poor grade, with highermoisture content. Mills have signed soymeal export orders. Nowthey need dry beans that can be crushed quickly," said PrasoonMathur, a senior analyst with brokerage Religare Commodities.

* Madhya Pradesh is likely to receive more rainfall in thenext 24 hours, the weather department said on Tuesday. Freshshowers can disrupt harvesting and further tighten supplies inspot market, Mathur said.

* At 0846 GMT, the key November soybean contract wasup 1.82 percent at 3,616.50 rupees ($58.48) per 100 kg on theNational Commodity and Derivatives Exchange. The contractearlier rose to 3,623 rupees, the highest level since Aug. 29.

* A weak rupee makes edible oil imports expensive, butraises the returns of oilmeal exporters. The rupee eased onTuesday.

* 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 November soyoil contract was 1.68 percenthigher at 686.70 rupees per 10 kg, while the rapeseed contractfor November edged up 1.15 percent to 3,596 rupees per100 kg.

* In the next few weeks, India will celebrate festivals suchas Dussehra and Diwali, when edible oil consumption typicallyrises.

* At the Indore spot market in Madhya Pradesh, soybeansedged up 2 rupees to 3,543 rupees per 100 kg, while soyoil rose5.30 rupees to 690.95 rupees per 10 kg. At Jaipur in Rajasthan,rapeseed climbed up 13 rupees to 3,651 rupees.

* India's soymeal exports surged to 173,381 tonnes inSeptember from 6,525 tonnes a year ago.

($1 = 61.8450 Indian rupees) (Reporting by Rajendra Jadhav; Editing by Anupama Dwivedi)

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