Indian soyoil futures fell on Wednesday with monsoon rains picking up in the main soybean growing state of Madhya Pradesh, bringing stocks of unused seeds into the market. Wheat was down marginally despite tight supplies on rumours the government may scrap a five percent import duty for the private trade.
The August soy oil contract at the National Commodities and Derivatives Exchange (NCDEX) was down 3 rupees to 427.10 per 10 kg, while the same month contract at the MCX fell by 3.75 rupees to 425.50.
"It is raining quite heavily in Madhya Pradesh. That is why the prices are falling as hoarded stocks are coming out in the market," said an Indore-based trader.
Timely and plentiful annual monsoon rains are essential at this time of the year, a key period for sowing soybean and other oilseed crops. The rains have arrived slightly late this year in key growing regions, and that may affect yields, a trader in the western state of Gujarat said.