On Dec 04, India soybean futures fell on account of weak international prices and a rise in supply at spot. Soybean is crushed to produce soyoil, which competes with palm oil. The prices of the two edible oils therefore often move in tandem. However, relisting soyoil after a gap of about 7 months restricted further soybean's losses in the Indian commodity exchanges.
Furthermore, Forward Markets Commission has allowed commodity exchanges to resume trading in four earlier-suspended commodities, according to Chairman P.C. Khatua. Additionally, lifting the official suspension on soyoil is a sign the government wants to support edible oil prices. Last month, the government re-imposed taxes on crude soybean oil imports and allowed limited exports of edible oils in an attempt to support prices.
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