Indian soyoil down on weak Malaysia, imports jump

MUMBAI, Jan 15 (Reuters) - Indian soyoil futures fell on Thursday tracking weak Malaysian palm and after news of a jump in edible oil imports, but firm local demand may cap losses.

A further easing in crude oil prices also weighed, with biofuel demand for soyoil expected to drop.

At 2:56 p.m. (0926 GMT), the January futures contract NSOF9 on India's National Commodity and Derivatives Exchange was down 1.04 percent to 489 rupees ($10) per 10 kg. February futures NSOG9 had dropped 1.65 percent to 474 rupees.

March palm oil futures KPOH9 on the Bursa Malaysia Derivatives Exchange had fallen 3.72 percent to 1,814 ringgit a tonne at 0927 GMT.

Soyoil and palm oil are related commodities and their prices often move in tandem.

"It looks like a temporary fall and buying interest in soyoil should return on the back of good domestic demand and lack of supplies," Raj Kishore Baruah, an analyst at Sushil Global Commodities Pvt Ltd, said.

Soybean supplies remained below expectations in early January as farmers continued to hold back expecting higher prices, traders said.

"If January prices persist above 480 rupees, then 540 is a possibility," Baruah said.

Imports of edible oils in the first two months of the oil year ending October 2009 jumped 98 percent to 1.24 million tonnes against 620,000 tonnes in the same period last year as international prices tumbled to new lows tracking crude.