India soybean down on supplies, Malaysian palm

MUMBAI, Dec 4 (Reuters) - India soybean futures fell on Thursday tracking weak international prices and a rise in arrivals at spot, analysts said.

At 10:40 a.m., January futures NSBF9 on the National Commodity and Derivatives Exchange fell 1.11 percent to 1,654 rupees per 100 kg.

At 10:41 a.m., February palm oil KPOc3 on the Bursa Malaysia Derivatives Exchange was down 0.59 percent at 1,527 ringgit a tonne.

Soybean is crushed to produce soyoil, which competes with palm oil. The prices of the two edible oils therefore often move in tandem.

However, soybean's losses were limited after Indian commodity exchanges relisted soyoil after a gap of about seven months.

The Forward Markets Commission has allowed commodity exchanges to resume trading in four earlier-suspended commodities, Chairman P.C. Khatua told Reuters late on Wednesday. See[ID:nBOM353032]

Soybean is crushed to produce soyoil. Lifting the official suspension on soyoil is a sign the government wants to support edible oil prices, they added.

Last month, the government re-imposed taxes on crude soybean oil imports and allowed limited exports of edible oils in an attempt to support prices. (Reporting by Abhishek Shanker; editing by Rohini Ananthan)