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India soybean, soyoil may ease on weak global mkt.


Date: 12-12-2008
Subject: India soybean, soyoil may ease on weak global mkt
India soybean and soyoil futures are likely to open a bit lower on Friday, depressed by weakness in overseas markets, though thin arrivals in the spot market may support prices, analysts said.

Palm oil and soyoil prices usually move in tandem as they are substitutes.

At 9:33 a.m., the February palm oil futures contract KPOc3 on the Bursa Malaysia Derivatives Exchange was down 2.37 percent at 1,605 ringgit per tonne.

Soybean January futures contract SF9 on the Chicago Board of Trade (CBOT), was down 0.96 percent at $8.48 a bushel in electronic trade.

January soybean NSBF9 on the National Commodity and Derivatives Exchange closed down 0.32 percent at 1,731.5 rupees per 100 kg in the previous session. January soyoil NSOF9 ended at 469.70 rupees per 10 kg, down 0.83 percent.

However, hopes the government may re-impose import duty on crude palm oil may restrict the downside.

India, the world's biggest vegetable oil importer after China, could tax crude palm oil shipments within a month, top industry analyst Dorab Mistry said last week. [ID:nKLR403786]

Source :  Reuters India


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