Oilseeds, Soyoil Firm on Global cues, Rains.

MUMBAI: India's oilseeds and soyoil futures gained more than 1 percent on Monday afternoon tracking firm overseas markets and buoyed by concerns rains may slow down the pace of soybean harvesting at home, analysts said. Chicago soy rose more than 2 percent on Monday to its highest since June 2009 on concerns that dry weather may hurt a soon to be planted crop in Brazil, while corn rallied to a new 2-year top amid strong demand and worries about U.S. yields.

Vegetable oil markets in China surged on Monday as speculative funds took up positions ahead of long holidays on concerns a dry spell may curb grain output in the Americas. "Overall sentiments are very positive. Global market is rallying. Traders are now talking about rains in Madhya Pradesh and Maharashtra may delay the soybean arrivals," said an analyst at Religare Commodities Ltd. Madhya Pradesh and Maharashtra are the top two soybean producing states in India.

Indian soymeal exports are likely to rise to 3.9 million tonnes in 2010/11 (Oct/Sept) from 2.67 million tonnes, Thomas Mielke, head of global oilseed research group Oil World, said earlier this month. At 1:13 p.m., October soybean on India's National Commodity and Derivatives Exchange (NCDEX) was 1.56 percent higher at 2,082 rupees per 100 kg.

October soyoil rose 1.26 percent to 494.1 rupees per 10 kg, while rapeseed for October delivery edged up 0.91 percent to 545.05 rupees per 20 kg. An expected rise in output of summer-sown oilseeds and record high imports of edible oil during August weighed on prices, analysts said. India imported a record 1.06 million tonnes of vegetable oils in August as buyers rebuilt depleted stocks ahead of the festival season, a leading trade body said.

The country's oilmeal exports in August rose 14 percent from a year earlier, its second straight monthly rise, owing to higher demand from traditional buyers in Japan and China, data from a trade body showed.

Source : economictimes.indiatimes.com