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Friday, April 23, 2010

India oilseeds seen up on overnight US mkt gains

MUMBAI: Indian oilseed futures are likely to extend the previous session's gains on Friday bolstered by overnight gains in the US market and on worries about the domestic rapeseed crop, analysts said. Soyoil futures, which closed near contract lows, are also likely to extend gains on firm Malaysian palm oil, they said. US soybean futures closed above $10 per bushel for the first time in three-months on Thursday amid bullish technical signals as the spot contract broke chart resistance at its 200 day moving average of $9.96-1/2.

The benchmark July crude palm oil futures on Bursa Malaysia Derivatives Exchange were up 1.37 percent at 2,524 ringgit per tonne at 9:26 a.m. The May soyoil contract on the National Commodity and Derivatives Exchange ended 0.38 percent up at 445 rupees per 10 kg on Thursday, after hitting a contract low of 442.5 rupees earlier in the day. The May soybean contract finished up 0.82 percent at 1,969.5 rupees per 100 kg, while the May rapeseed contract closed 0.38 percent higher at 502.25 rupees per 20 kg.

An industry body said in March the country's rapeseed output in 2010 is expected to rise marginally to 6.3 million tonnes on good weather conditions. Traders said output may be lower than estimates considering the arrivals in spot market. Sluggish meal exports may cap the gains in oilseed complex, analysts said. India's March oilmeal exports slumped 34 percent from a year earlier, falling for the fifth straight month, due to weak demand from Vietnam, Japan, South Korea, Indonesia, Thailand and China, a trade body said.

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