MUMBAI (Dow Jones)--India's edible oil prices fell in the week ended Friday
following rains in the major soybean growing areas and mostly weak overseas
oilseed markets.

  During the week ended Aug. 19, the country's rainfall deficit narrowed to 2%
below normal from 56% below normal the preceding week.

  "In the last couple of days, there have been good rains in the state. If the
rains are normal in the next week, then we can expect a good soybean crop,"
said Mahesh Bahaya, a trader based in the central Indian state of Madhya
Pradesh.

  Madhya Pradesh is the country's main producer of soybeans, which is the major
oilseed grown in the summer.

  Bahaya said the delay in rains at the beginning of the sowing season will
lead to late harvesting of the new crop.

  As of Aug. 12, the area under oilseeds fell to 15.25 million hectares from
16.42 million hectares during the year-earlier period.

  However, the area under soybean cultivation as of Aug. 12 was 9.38 million
hectares compared with 9.28 million hectares a year earlier.

  Looking ahead, prices are expected to improve in the coming weeks on festival
demand and the spillover effect from rising commodities prices due to a drought
in many Indian states.

  Overall, 246 of India's 625 administered districts have declared a drought so
far, after key monsoon rains were 26% below average until Aug. 19.

  India's Meteorological Department has estimated that rainfall during the
June-September monsoon season this year will be around 13% below the long-term
average, severely reducing plantings and damaging standing crop in many parts
of the country.

  Refined, bleached and deodorized palm olein prices fell to INR39,500/ton from
INR40,800/ton last week, while refined soyoil declined to INR45,100/ton from
INR46,500/ton.

  Crude palm oil fell to INR35,000/ton compared with INR36,200/ton last week.