Indian soyoil futures fall on profit booking

19 Sep, 2007

Indian soyoil contracts fell on Tuesday as traders locked in profits after prices had climbed more than 3 percent in nearly a week, but analysts said strong Malaysian palm oil would underpin the market. At 2:37 pm (0907 GMT), the October futures on the National Commodity and Derivatives Exchange was down 1.45 percent at 487.60 rupees ($12) per 10 kg.
The November soyoil contract fell 0.31 percent to 485.50 rupees. The September soyoil contract, which expires on Thursday, eased 0.19 percent to 484.10 rupees. "Good demand in the physical market helped push up the prices in the last few days and some profit booking is happening at current prices," said Dinesh Somani, analyst at Indiabulls Commodities Pvt Ltd.
Fresh buying can be expected later in the day due to strong support from rival Malaysian palm oil, he said. In Malaysia, December palm oil futures on the Bursa Malaysia Derivatives Exchange were up 0.61 percent at 2,606 ringgit ($744.6) a tonne due to rising crude oil prices. Palm oil and soyoil are related commodities with similar markets. Their prices often move in tandem.

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