03/12/2008 (Reuters), Mumbai -  India soybean futures fell on Wednesday morning on fresh selling on the back of weak Malaysian palm oil futures and on expectations of high arrivals in the spot market as farmers increase supplies, analysts said.

At 11:08 a.m., the January futures NSBF9 on the National Commodity and Derivatives Exchange fell 1.20 percent to 1,693 rupees per 100 kg.

Farmers had been holding on to their produce hoping to get better prices. Prices of soybean have risen over 12.5 percent since an all-time low of 1,533 rupees on Nov.18, prompting farmers to bring their produce to the market.

Total arrivals on Tuesday rose to 700 tonnes in Indore, a hub for soybean trade in India, against an average daily arrival of about 200-300 tonnes last week.

The February palm oil contract KPOc3 on the Bursa Malaysia Derivatives Exchange was down 2.56 percent at 1,562 ringgit a tonne.