India soyoil drops on rising supply, weak palm oil
Indian soyoil futures fell more than 1 percent on Wednesday, tracking losses in rival Malaysian palm oil and due to a rise in supplies in local spot markets, boosted by a pick-up in soybean crushing.
Soybeans and rapeseed edged higher on good demand from oil millers due to a robust exports demand for oilmeal.
At 0814 GMT, Malaysian palm oil futures were down 1.75 percent at 2,251 ringgit per tonne, while U.S. soybeans were down 0.51 percent to $14.64-1/2 per bushel.
India meets more than half of its edible oil requirement through imports, which constitute largely palm oil.
The January soyoil on India's National Commodity and Derivatives Exchange dropped 0.96 percent to 703.25 rupees per 10 kg, while soybeans rose 0.27 percent to 3,334 rupees per 100 kg.
"Soyoil is under pressure due to rising supplies. Oil millers are aggressively crushing the new season soybean crop. The January contract can drop to 680 rupees," said Subhranil Dey, an analyst with SMC Comtrade.
January rapeseed rose 0.41 percent to 4,161 rupees per 100 kg.
Indian farmers have cultivated rapeseed on 6.05 million hectares as on Dec. 7, compared with 5.96 million hectares during the same period last year.
India exported 517,103 tonnes of soymeal in November, compared with 49,840 tonnes in the previous month, industry body the Solvent Extractors' Association of India (SEA) said last week.
At the Indore spot market in Madhya Pradesh, soyoil fell 3.65 rupees to 724.5 rupees per 10 kg, while soybeans edged down 5 rupees to 3,291 rupees per 100 kg. At Sri Ganganagar in
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