Indian oilseeds and soyaoil futures fell on Wednesday on sluggish demand in spot markets, a rise in rapeseed acreage, and a stronger rupee. As of 0750 GMT, Malaysian palm oil futures were unchanged at 2,428 ringgit per tonne. The January soyabean contract on the National Commodity and Derivatives Exchange was down 0.42 percent at 3,216 rupees per 100 kg. An expected rise in palm oil imports in January also weighed on soyaoil prices, dealers said.

India meets more than half of its edible oil requirement through imports, which largely constitute palm oil. India's palm oil imports in January are likely to rise to a record high as Malaysia allowed duty free exports, a senior industry official said on December 20. The January soyaoil contract was 0.61 percent lower at 689.8 rupees per 10 kg, while the January rapeseed contract dropped 0.43 percent to 4,157 rupees per 100 kg.

Indian farmers have cultivated rapeseed on 6.44 million hectares as of December 21, compared with 6.27 million hectares during the same period last year. A strong rupee makes edible oil imports cheaper and at the same time trims returns of oilmeal exporters. The rupee rose on Wednesday. At the Indore spot market in Madhya Pradesh, soyaoil was steady at 714 rupees per 10 kg, while soyabeans fell by 26 rupees to 3,287 rupees per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed dropped by 85 rupees to 4,240 rupees.

Copyright Reuters, 2012