A dip in world prices dragged down Indian soyaoil and gold futures on Monday, while sugar fell on profit-taking and adequate supplies, brokers said. April soyaoil at the Multi Commodity Exchange (MCX) was down 0.31 percent at 386 rupees per 10 kg. The April contracts at the National Commodity and Derivatives Exchange (NCDEX) dropped 0.92 percent to 386 rupees.
"The fall in soyaoil and bean prices are a temporary phenomenon because the international oil market is down," said a broker based in Indore, the hub of the country's soyabean trade.
He said prices of palm oil at the Kuala Lumpur exchange on Monday and soyaoil at the Chicago Board of Trade (CBOT) last week were lower and these were being reflected in the local markets.
"The market is not weak and there is no panic," said one broker, adding that the prices had picked up slightly from lows. India, the world's largest edible oil importer, buys palm oil from Malaysia and Indonesia and soyaoil from Brazil and Argentina.
Sugar prices fell on profit taking by traders and expectation of lower demand in April. There was speculation that the government is likely to extend the deadline for the March sugars quota. Producers can sell allocating fixed quantities that the government controls distribution of sugar in the local market, every month in the market.
NCDEX's April sugar was down 16 rupees at 1,889 rupees per 100 kg. Brokers said gold futures also fell because of a drop in world prices. India is the world's largest importer and consumer of gold.
NCDEX's April gold was down 0.29 percent at 6,290 rupees per 10 grams, while at the Multi Commodity Exchange, April futures lost 0.25 percent to 6,276 rupees.
"Local prices are purely tracking the international prices which are low because of a strong dollar," said a broker in the southern city of Madras. "There are no local factors at play."
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