MUMBAI: Oilseeds fell more than 1 percent in early trade on Tuesday, extending losses from their lowest level in more than three weeks, weighed by expectations of rising supplies next month and sagging overseas markets.
The most-active soybean for October delivery on the National Commodity and Derivatives Exchange ( NCDEX) was 0.73 percent lower at 3,396.50 rupees per 100 kg, after hitting a low of 3,375 rupees, a level last seen on June 16.
Traders expect the prices to fall further in the coming sessions.
October rapeseed fell 0.73 percent to 3,945 rupees per 100 kg, after hitting a low of 3,896 rupees, a level last seen on June 29.
"Trend is weak in soybean, production estimates are high and arrivals are also coming and they will increase, which have led to decline in prices," said Chowda Reddy, senior analyst with JRG Wealth Management.
Selling is advised in soybean at 3,410 rupees, for a target of 3,360, with a stop loss 3,440 rupees, said Reddy.
Malaysian palm oil was 0.76 percent lower at 2,626 ringgits per tonne, while CBOT soybean was 0.09 percent at $16.08-1/2 per bushel.
Arrivals of soybean from the summer-sown crop have already started in small quantities and will pick up significantly in October.
At the Indore spot market in Madhya Pradesh, soyoil slipped 4.25 rupees to 750.05 rupees per 10 kg, while soybean rose by 49 rupees to 3,422. At Sri Ganganagar in Rajasthan, rapeseed fell 50 rupees to 4,050 rupees per 100 kg.
Soyoil, however, rose after falling more than 2 percent in the previous session, helped by a weaker rupee that makes the imported oil expensive. India imports more than half of the edible oil it needs.
India's 2012/13 edible oil imports could rise 4.2 percent to a record high, with palm oil cornering the bulk of that, a Reuters poll showed, as the world's second most populous country fails to raise output quickly enough to meet demand from a growing middle class.
