Indian soyoil futures ease, sugar extends fall

Indian soyoil futures fell on Friday in line with world markets, while sugar extended a drop on abundant supplies. By 0920 GMT, June soyoil futures on the National Commodity and Derivatives Exchange (NCDEX) was down 1.75 rupees at 484.80 rupees per 10 kg, with July futures also easing by the same margin to 491.15.
An analyst at a Mumbai-based brokerage said Indian soyoil futures fell in line with the Malaysian market where palm oil dipped as traders booked profit. Prices of palm and soy oils usually move in tandem as both commodities are used in products ranging from candies and lipsticks to fuel.
India, one of the world's top vegetable oil importers, buys palm oil from Malaysia and Indonesia and soyoil from Brazil and Argentina. The analyst said sugar fell on forecasts of a bumper output in the year to September 2007.
June sugar futures on the NCDEX were down 34 rupees at 1,272 per 100 kg, while July futures fell 32 rupees to 1,312. India consumes more than 18 million tonnes sugar annually and is likely to churn out a record 26 million tonnes in the year to September 2007, up from 19.3 million tonne last year.