India meets more than half of its edible oil requirement through imports, which constitute largely palm oil. The January soyabean contract on India's National Commodity and Derivatives Exchange rose 1.32 percent to 3,305 rupees per 100 kg. India exported 517,103 tonnes of soyameal in November, compared with 49,840 tonnes in the previous month, industry body the Solvent Extractors' Association of India (SEA) said last week.
"Lower soyabean supplies in spot markets are giving support to prices. Global markets are not supportive. In US soyabean prices are falling," said Chowda Reddy, a senior analyst with JRG Wealth Management. Soyabean supplies in India usually peak in November and December as farmers bring in the new-season crop. This year many big farmers are holding back supplies, hoping that prices could jump in 2013.
Indian farmers have cultivated rapeseed on 6.05 million hectares as on December 7, compared with 5.96 million hectares during the same period last year. At the Indore spot market in Madhya Pradesh, soyaoil fell 1.3 rupee to 728.2 rupees per 10 kg, while soyabean edged up 8 rupees to 3,248 rupees per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed nudged up by one rupee to 4,357 rupees. India's soyabean production in 2012/13 is expected to rise 8.8 percent on year to 12.67 million tonnes, while rapeseed output is likely to grow nearly 25 percent to 6.5 million tonnes, industry officials said.