India soybean down on profit-taking, Malaysian palm

MUMBAI, Dec 2 (Reuters) - India soybean futures fell on Tuesday on profit-taking following a 12.5 percent gain in the past two weeks, analysts said.

Falling crude oil prices, weak palm oil futures in Malaysia and a drop in soymeal demand following an outbreak of bird-flu encouraged traders to book profits, they added.

Rapeseed futures were also trading down tracking falls in soybean futures and on expectations of a good crop in 2009.

At 2:25 p.m. January futures NSBF9 on the National Commodity and Derivatives Exchange were down 0.99 percent at 1,703 rupees per 100 kg.

Traders estimated arrivals in the spot market in Indore at about 900 tonnes, higher than 700 tonnes on Monday. Spot prices in the Indore market were steady at 16,600 rupees per tonne.

At 2:28 p.m. February palm oil futures KPOc3 on Bursa Malaysia Derivatives Exchange fell 2.95 percent at 1,580 ringgit a tonne. Crude oil prices CLc1 touched a new contract low at $47.36 a barrel on Tuesday.

Soymeal prices were down following a bird-flu attack in north eastern state of Assam. Prices were also affected by higher supplies in spot market and weak international soymeal prices, traders in Nagpur, a hub for soybean trade in India, said.

Authorities in Assam began culling chickens after a fresh outbreak of bird-flu was detected late last week.

Soymeal is the main byproduct derived from the crushing of the oilseed and is mainly used as poultry feed. (Reporting by Abhishek Shanker; editing by Sunil Nair)