MUMBAI: Indian oilseeds and soyoil futures opened higher on Thursday tailing gains in overseas markets, but quickly erased gains on weak domestic demand and higher stocks, analysts said. U.S. soybeans and corn futures advanced on Thursday, pulled up by a one percent rise in oil prices following a drop in U.S. crude inventories and increasing risk appetite that sent stock markets up and the dollar lower.
Malaysian palm oil futures rose by midsession on Thursday as investors tested resistance on the back of gains in crude oil and rival soyoil, traders said. "Millers are not buying oilseeds actively due to negative crushing margin. Export demand for oilmeal is also weak," said an analyst at Angel Commodities Broking Pvt Ltd.
April oilmeal exports slumped 14.35 percent from a year earlier, falling for the sixth straight month, on low domestic crushing and as a strengthening rupee weakened demand from Vietnam and China, a trade body said.
The July rapeseed contract on the National Commodity and Derivatives Exchange was down 0.37 percent to 525.70 rupees per 20 kg. In the Jaipur spot market in Rajasthan, the country's top rapeseed producing state, the price fell by 3.75 rupees to 508.95 rupees per 20 kg.
The July soybean contract on the National Commodity and Derivatives Exchange was down 0.31 percent to 1,948.50 rupees per 100 kg, while the July soyoil contract eased 0.14 percent to 451 rupees per 10 kg. At the Indore spot market, in top producer Madhya Pradesh, soybean was down 17 rupees to 1,960 rupees 100 kg and soyoil edged down a rupee to 448.25 rupees 10 kg.
India's monsoon will start to advance again towards the southern Karnataka state by June 5, but the small delay caused by a cyclone is unlikely to threaten the sowing of crops, farm secretary P.K. Basu said on Wednesday. Rapeseed harvest in India, the world's top edible oils buyer, is likely to be 6.59 million tonnes, down from the estimated 7.43 million in February and the actual production of 7.2 million tonnes last year, official data showed.
