Indian soyoil futures eased more than 0.4 percent by Wednesday afternoon, tracking losses in Chicago Board of Trade and weakness in Malaysian palm oil futures. But the outlook remain positive on slower imports in July, high global prices and lower crushing capacity in Argentina due to restrictions in electricity supply, analysts said.
At 1 pm (0730 GMT), the July contract on the National Commodity and Derivatives Exchange was down 0.4 percent at 494.7 rupees ($12.2) per 10 kg. The August contract fell 0.48 percent to 501.5 rupees. "I will suggest a buy at 500-501 rupees for the August contract. The contract should test 510 rupees in coming days," Veeresh Hiremath, analyst at Karvy Comtrade Ltd, said.
"Strong fundamentals should lead to short-covering in the afternoon," an analyst from an Ahmedabad-based brokerage said. The benchmark September palm oil futures on Bursa Malaysia Derivatives Exchange were down 2 percent at 2,477 ringgit ($718.3) while the soyoil July futures on Chicago Board of Trade fell 0.37 cents on Tuesday to 36.36 cents a pound.
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