A weak Malaysian market pulled Indian soyaoil futures lower on Monday, while sugar was down as mills continue to struggle with falling prices. July soyaoil futures on the National Commodity and Derivatives Exchange (NCDEX) were down 1.20 rupees at 487.40 rupees per 10 kg, while August futures had dropped 1.45 rupees to 492.20.
An analyst with a Mumbai-based brokerage said soyaoil had fallen in line with key market Malaysia, where trade was weak due to slack export demand. Exports of Malaysian palm oil products for June 1-25 fell 10.6 percent to 821,500 tonnes from 918,738 tonnes shipped between May 1 and 25, according to the country's cargo surveyor Interlake Testing Services.
"We do not see any trigger in the domestic market for at least the next couple of weeks. The downturn was purely a result of weakness in Malaysia," the analyst said.
Sugar fell and would continue to remain bearish due to supplies running ahead of demand, he said. July sugar futures on NCDEX were down 4 rupees at 1,321 per 100 kg, while August futures eased 3 rupees to 1,347 rupees.
Sugar output in India is likely to touch a record 28 million tonne in the sugarcane season that ends in September, up from 19.3 million tonnes a year ago, according to government estimates. Annual consumption is around 19-20 million tonnes. A supply glut and falling prices are likely to hurt sugar firms for at least the next 12 months, the analyst said.
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