MUMBAI: Soybean and soyoil futures fell more than two per cent on Monday, hammered by a similar trend overseas and a rise in soybean supplies in the local spot markets.
Rapeseed edged higher on good demand and depleting stocks. * Malaysian palm oil futures were down 3.81 per cent at 2,401 ringgit per tonne at 0801 GMT and US soybeans fell 0.8 per cent to $15.14-3/4 per bushel.
The December soybean contract on India's National Commodity and Derivatives Exchange was down 0.93 per cent at Rs 3,291 per 100 kg, after falling to 3,258 rupees earlier.
"Local and overseas fundamentals are putting pressure on prices. This week we can see further downside in soybean and soyoil," said Prasoon Mathur, a senior analyst with Religare Commodities.
"Soybean supplies are rising. Bulk demand for edible oils has also gone down. Up to an extent weak rupee will limit the downside in soyoil prices."
A weak rupee makes edible oil imports expensive and at the same time raises returns of oilmeal exporters.
The December soyoil contract dropped 0.96 per cent to Rs 657.5 per 10 kg, while rapeseed edged up 0.36 per cent to Rs 4,173 per 100 kg.
At the Indore spot market in Madhya Pradesh, soyoil slipped Rs 8.55 to Rs 689.7 per 10 kg, while soybean fell Rs 28 to Rs 3,256 per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed dropped by Rs 38 to Rs 4,213.
India's soybean production in 2012/13 is expected to rise 8.8 per cent on year to 12.67 million tonnes, while rapeseed output is likely to grow nearly 25 per cent to 6.5 million tonnes, industry officials said.
India's soymeal exports in October rose to 51,050 tonnes from 2,864 tonnes in September, the Soybean Processors Association of India said in a statement on Monday.
India should impose a 10 per cent tax on crude palm oil imports to protect its farmers and the industry from cheap imports, a leading analyst said on Sunday.
