India soybean, soyoil edge up on lower output f'cast

MUMBAI, May 12 (Reuters) - Indian soybean and soyoil futures rose in early trade on lower soybean output estimates in the year ending September 2009 and tracking a firm Malaysian palm oil, analysts said.

At 10:10 a.m, the June soybean contract NSBM9 on the National Commodity and Derivatives Exchange rose 0.52 percent to 2,714 rupees per 100 kg.

The June soyoil contract NSOM9 was at 508.85 rupees per 10 kg, up 0.28 percent.

India's soybean output may drop to 8.2 million tonnes in the year ending Sept 2009, down more than a fifth from early estimates, as lower rainfall trimmed yields in producing areas, a top trade official said.

"Earlier we were expecting (soybean) production of 108 lakh (10.8 million) tonnes but lower rainfall has significantly cut yield," Ramesh Chandra Agarwal, chairman, Soybean Processors' Association of India (SOPA), told Reuters in an interview. [ID:nBMB005239]

At 10:00 a.m. the benchmark July palm oil futures KPOc3 on Bursa Malaysia Derivatives Exchange was up 1.05 percent at 2,688 ringgit a tonne.

Soyoil, an edible oil, is used as a substitute for palm oil. Their prices often move in tandem.

However, some traders may square off their positions ahead of a crucial U.S Department of Agriculture report on world supply and demand expected late on Tuesday. (Reporting by Abhishek Shanker & Sourav Mishra; Editing by Prem Udayabhanu)