Soybean, soyoil shed over 1 pc on output view.

MUMBAI: Indian soybean and soyoil futures shed over 1 percent on Friday afternoon, as hopes of higher output of summer-sown oilseeds and fall in global markets depressed sentiment, analysts said. "Overseas markets are weak. Selling pressure is building in domestic market as traders are anticipating higher production of kharif oilseeds," said Veeresh Hiremath, senior analyst with Karvy Comtrade.

Malaysian crude palm oil futures hit a three-week low on Friday on expectations of record high soy production and lacklustre export data from cargo surveyors.

U.S. soy futures were down 0.64 percent at 1:05 p.m. September soyoil on India's National Commodity and Derivatives Exchange (NCDEX) was down 1.42 percent at 490.35 rupees per 10 kg, after hitting an intraday low of 488.9 rupees, the lowest level for the second month contract since July 30.

Higher imports of edible oils are also offsetting hopes of an improvement in edible oil demand in coming weeks due to festival season, Hiremath said. India's July vegetable oil imports rose by a third from a year earlier, increasing for the first time since December, on purchases to build reserves ahead of festival demand.

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 showedy. Soybean crop in all major producing states like Madhya Pradesh, Maharashtra, Rajasthan and Andhra Pradesh is in good shape, Soybean Processors Association of India said last week.

September soybean on NCDEX fell 1.43 percent to 2,063 rupees per 100 kg, while rapeseed for September delivery edged down by 0.09 percent to 555.35 rupees per 20 kg. India's July oilmeal exports rose over a third from a year earlier, reversing the falling trend of the last eight months as a weaker currency helped boost sales to China, Japan and South Korea.

Source : economictimes.indiatimes.com