Mumbai: Indian soyoil futures fell on Friday, 3 August, on concerns the government will sell imports at a discount to ease prices in the physical market, and weak Malaysian palm oil futures, analysts said.
At 2:25pm (08:55 GMT), the August contract on the National Commodity and Derivatives Exchange was down 0.48% at Rs501.65 ($12.4) per 10 kg.
The September contract had fallen 0.38% to Rs504.70.
“To check price rise the government may import up to 100,000 tonnes of soyoil, which it may sell at below cost price. This is worrying the market,” said Badruddin Khan, senior research analyst at Angel Commodities Broking Pvt. Ltd.
In an attempt to contain rising edible oil prices the government has asked three state-run agencies and a farmers’ cooperative to step up edible oil imports.
But an official at one of the firms — the State Trading Corp. — told Reuters the imports would be released for free sale and not sold at subsidised rates, as suggested by recent media reports.
According to the Soybean Processors’ Association of India, an industry body, local refined soyoil prices have risen about 2.1% to Rs482 per 10 kg in last month.
The markets were also impacted by weak Malaysian palm oil futures, an analyst at Kotak Commodity Services Ltd said.
The benchmark October contract on the Bursa Malaysia Derivatives Exchange was down 17 ringgit at 2,585 ringgit ($747.1).
Palm and soy oils compete for similar markets and their prices often move in tandem.