India Oilseeds, Soyoil Jump On Global Markets, Demand.

MUMBAI: Indian oilseeds and soyoil futures jumped on Wednesday, tracking overseas gains and on healthy demand in local spot markets, analysts said.

Malaysian palm oil rose to a fresh one week high on Wednesday, tracking comparative oils higher on persistent uncertainty about whether output can keep pace with robust demand. At 5:28 p.m., US soy futures were 1.02 percent higher at $14.37-¾ per bushel.

"Concerns over soybean crop in Argentina due to bad weather and hopes of good Chinese demand are supporting oilseed complex," said Sudha Acharya, analyst at Kotak Commodities .

A trade delegation from China will sign agreements in Chicago on Thursday to buy an unspecified amount of U.S. soybeans, the US Soybean Export Council said in a statement.

Argentina's drought-hit 2011 soybean crop could fall to or below 46 million tonnes from 54.5 million tonnes in 2010 unless much more rain falls, Hamburg-based oilseeds analysts Oil World said on Tuesday.

February soybean on India's National Commodity and Derivatives Exchange ended up 1.09 percent to 2,502 rupees per 100 kg. In the Indore spot market, soyoil was up 2.4 rupees at 640.5 rupees, while soybean rose by 10 rupees to 2,402 rupees per 100 kg.

India's oilmeal export jumped 94 percent in December from a year earlier, its sixth straight monthly rise, on robust demand from traditional buyers in Japan, Vietnam and Indonesia, data from a leading trade body showed.

February soyoil finished 1.1 percent higher at 655.05 rupees per 10 kg, while April rapeseed rose by 0.65 percent to 2,953 rupees per 100 kg. In the Jaipur spot in Rajasthan, the country's top rapeseed producer, price was up 2.5 rupees at 579.3 rupees per 20 kg.

The acreage under rapeseed as on Jan. 14 stood at 7.1 million hectares, compared with 6.4 million hectares during the same period a year ago, data with farm ministry showed.

Source : economictimes.indiatimes.com