India soybean rises on spot demand, bargain-buying

MUMBAI, Jan 18 (Reuters) - India's soybean futures were trading higher on Monday afternoon after snapping a three-session losing streak on improved spot demand and bargain-hunting, analysts said.

"They are trading higher mainly because of short-covering. Export demand for meal is still weak," said an analyst at JRG Wealth Management.

At 3:35 p.m., the February soybean contract NSBG0 on the National Commodity and Derivatives Exchange was up 0.77 percent to 2,214 rupees per 100 kg.

The contract had shed over 8 percent this month tracking weak overseas markets and sluggish meal exports, analysts said.

Soybean is crushed to produce soyoil and soymeal.

In Nagpur, a major spot market in western Maharashtra state, price rose by 16 rupees to 2,233 rupees.

Malaysian crude palm oil futures lost as much as 2.2 percent to hit an eight-week intraday low by midday on Monday as weaker crude oil and soy prices continued to drag down the market, traders said. See [ID:nJAK116696]

Indian millers say since oil and meal do not command good prices, processing soybean is economically unviable, leading to sluggish demand for the oilseed in the spot market.

India's oilmeal exports slumped 44 percent to 395,663 tonnes in December from 708,631 tonnes a year earlier, a leading trade body said on Jan 6.