10/08/2010 (Economic Times), Mumbai - Indian soyoil futures eased on Tuesday, after reaching their highest level in nearly 15 months in the previous session, as weakness in palm
oil prompted profit-taking, analysts said. Soybean futures also fell on profit-taking driven by higher acreage under oilseeds and favourable weather, but an improvement in meal exports limited the downside. Rapeseed futures erased early losses and rose nearly 1 percent on strong demand and an estimated fall in the output, they said.

"Weak palm oil hurt sentiments, but outlook is firm. Festival season demand will improve in coming weeks," said an analyst at Angel Commodities. Malaysian crude palm oil futures eased from a 15-month high on Tuesday as investors took profits on lower overseas demand and weaker soyoil markets after five straight trading days of gains.

Demand for edible oils usually goes up in India during August-October due to the holy Muslim fasting month of Ramadan and Hindu festivals like Ganesh puja and Diwali. At 1:18 p.m., the September soyoil on India's National Commodity and Derivatives Exchange (NCDEX) was down 0.77 percent at 510.9 rupees per 10 kg. The contract hit a high of 519.3 rupees in the previous session, which was highest level for second month contract since May 13, 2009.

In the Indore spot market, soybean fell by 20 rupees to 2,099 rupees per 100 kg, while soyoil eased by 1.85 rupees to 504.45 rupees per 10 kg. The September soybean on NCDEX dropped 0.83 percent to 2,146.5 rupees per 100 kg. As on Aug 5, area under oilseeds in the world's biggest edible oil importer stood at 15.32 million hectares, compared to 15.07 million hectares a year ago.

India's July oilmeal exports rose over a third from a year earlier, reversing the falling trend of the last eight months as a weaker currency helped boost sales to China, Japan and South Korea.

The country's soymeal exports nearly tripled to 166,632 tonnes in July. September rapeseed rose 0.86 percent to 567.5 rupees per 20 kg. In the Jaipur spot market in Rajasthan, the country's top rapeseed-producing state, the price rose by 1.8 rupees to 557.35 rupees for 20 kg.