India soybean, soyoil end down; outlook bearish

MUMBAI, July 22 (Reuters) - Indian soybean and soyoil futures ended down on Wednesday tracking falls in Malaysian palm and prices are likely to fall further after Indonesia, a large palm oil exporter, removed duty on palm oil exports, analysts said.

Indonesia cut its palm oil export tax to zero from 3 percent in July and reduced the crude palm oil base export price to $574 a tonne from $683 in July due to a price fall, a trade minister said on Wednesday. [ID:nJKF000254]

India imports about half of its annual edible oil requirement mainly in the form of palm oil from Indonesia and Malaysia.

"With zero duty, palm oil imports to India may further rise in the coming weeks..supplies are not a concern," said Badruddin Khan, senior analyst, Angel Commodities Broking Pvt Ltd.

India's imports have already risen sharply, so far, in the current year and vegetable oils imports may rouch a record 8 million tonnes by the year-end in Oct 2009, a leading trade body said last week.

Expectations of good yields in the U.S., the world's largest soybean producer, also weighed on prices as it may raise supplies, analysts said.

If good growing weather persists through August, soybean yields in the United States could reach 44.7 bushels per acre, said Darrel Good, extension economist at the University of Illinois.

The U.S. Agriculture Department predicted soybean yields of 42.6 bushels per acre in its latest forecast. [ID:nN21243130]

Large-scale sowing in Indian states of Madhya Pradesh and Maharashtra, the country's top two producers, also weighed on prices.

The benchmark October palm oil futures KPOc3 on Bursa Malaysia Derivatives Exchange ended down 2.75 percent at 2,084 ringgit a tonne.

Soybean is crushed to produce soyoil, which competes with palm oil as cooking medium. Their prices often move in tandem.

The spot market in central city of Indore, a hub for oilseed and edible oil trade, was closed on account of a holiday.