India soybean extends losses; hits over 1-week low.

MUMBAI: India soybean futures extended losses on Tuesday afternoon to a one-week low on higher imports as well as rising acreage in the crop, analysts said.

September soybean on India's National Commodity and Derivatives Exchange (NCDEX) was trading 1.25 percent lower at 2,095.00 rupees per 100 kg at 1:10 p.m., after falling to a low of 2,081 rupees, the lowest level since Aug. 5.

The contract had shed 2.1 percent in the previous session. "Selling could be done in soybean at 2,105, targeting 2,075," said Chowda Reddy, senior analyst with JRG Wealth Management.

India imported 800,644 tonnes of vegetable oil in July, up 34 percent from 596,024 tonnes a year earlier, a leading trade body said on Monday, on heavy purchases by traders ahead of the August-October festive season.

As on Aug 12, area under oilseeds in the world's biggest edible oil importer stood at 15.82 million hectares, against 15.28 million hectares a year ago, farm ministry data showed on Friday.

But rising local demand festive demand limited losses, analysts added.

Demand for edible oils usually goes up in India during Aug-Oct due to the holy Muslim fasting month of Ramadan and Hindu festivals like Ganesh puja and Diwali.

Soyoil also extended losses tracking weak Malaysian palm. September soyoil was trading 0.99 percent lower at 506.75 rupees per 10 kg, while rapeseed for September delivery was at 561.65 rupees per 20 kg, down 0.89 percent.

Malaysian palm was trading 0.78 percent down at 1:11 p.m. India is likely to have produced 6.41 million tonnes of rapeseed in 2009/10, compared to 7.2 million tonnes a year before, farm ministry data showed.

Source : economictimes.indiatimes.com