MUMBAI, Dec 22 (Reuters) - India's soybean futures extended the previous session's losses on Tuesday tracking weakness in Malaysian palm and sluggish domestic demand on falling oilmeal exports, analysts said.
The January soybean contract NSBF0 on the National Commodity and Derivatives Exchange ended down 2.31 percent at 2,328.5 rupees per 100 kg.
Malaysian crude palm oil futures fell for a second day on Tuesday on a firmer U.S. dollar, but the decline was slower compared to the day before due to expectations of a stock drawdown.
Indian soybean prices track Malaysian palm oil prices as palm is used as an substitute for soybean oil and their prices move in tandem.
India's oilmeal exports halved to 346,859 tonnes in November, its first monthly fall in three months, as soymeal prices rose following a poor oilseed crop and as shipments to Vietnam, Japan and China fell.
"Poor export enquiries for Indian soy meal is weighing on Indian market," said an analyst with Karvy Comtrade Ltd.
Soybean is crushed to produce soyoil and soymeal.
Source : REUTERS