Indian far-month soyaoil futures edged up on Wednesday on support from Malaysian palm oil, which gained due to firm crude prices and strong exports growth, analysts said. But overall sentiment remained weak ahead of expected record output in the oilseeds crop year beginning October 1, they added.
"Traders are not ready to pay current rates in the far-month contracts as prices will fall once crushing begins in October," an analyst at Angel Commodities Brooking Pvt Ltd said. The near-month contract fell slightly as traders squared off their positions ahead of the contract expiry on September 20. At 2:45 pm (0915 GMT), the September soyaoil contract on the National Commodity and Derivatives Exchange was down 0.35 percent at 475.80 rupees ($11.7) per 10 kg.
October futures rose 0.11 percent to 475.50 rupees. According to an estimate by trade body Central Organisation for Oil Industry and Trade, India is likely to produce a record 8.6 million tonnes of soyabeans in 2007/08, up from 7.66 million tonnes in the previous year. In Malaysia, the benchmark November palm oil futures rose 0.84 percent to 2,521 ringgit ($720.3).