Indian soyaoil futures fell more than 0.4 percent on Monday after data showed an increase in the area being used for oilseed cultivation this year, analysts said. Weak Malaysian palm oil futures and profit booking after a more than 2.4 percent rally last week added to selling pressure.
Palm and soyaoil are related commodities and their prices generally move in tandem. At 2:00 pm (0830 GMT), the July contract, on the National Commodity and Derivatives Exchange (NCDEX) was down 0.40 percent at 499.5 rupees ($12.3) per 10 kg.
August contract fell 0.47 percent to 506.8 rupees. "The market is in a correction mode which may last for two to three sessions," said an analyst at Angel Commodities Brooking. The government on Friday released sowing data for the current kharif season.
It showed the total area under oilseeds had risen to 9.5 million hectares, compared to 8.7 million hectares in the same week a year ago. The benchmark September palm oil contract on the Bursar Malaysia Derivatives Exchange fell 1 percent to 2,598 ringgit ($753.4).