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Indian soyoil futures eased on Thursday as rival palm oil fell in Malaysia, but thin arrivals in the domestic market and firm sppot prices limited the losses At 2:30 pm (0900 GMT), January futures on the National Commodity and Derivatives Exchange were down 0.16 percent at 460.75 rupees ($9.8) per 10 kg.
The February contract was trading down 0.24 percent at 449 rupees. Malaysian palm oil futures on the Bursa Malaysia Derivatives Exchange fell 1.08 percent to 1,563 ringgit per tonne after crude oil hit a fresh four-year low. Soyoil traders often watch Malaysian palm oil as the two commodities compete in many markets and their prices move in tandem.
Arrivals in India are likely to remain thin as the peak season has ended, said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd. Soybean arrivals in Indore, a major trading hub in the central state of Madhya Pradesh, dropped to 650 tonnes from 700 tonnes on Wednesday while spot prices rose 0.7 percent to 43,300 rupees per tonne.

Copyright Reuters, 2008

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