Indian soya futures rose slightly on Friday on trade talk of an increase in base import prices of palm and soya oils, while wheat rose on lower stocks and gold was steady.
October soyaoil at the Mullet Commodity Exchange was up 0.20 rupees per 10 kg at 360.80 rupees. The November contracts rose 0.10 rupees to 365 rupees.
Traders said the government was likely to raise the base import prices of palm oils, imported from Malaysia and Indonesia and soya oil bought from Argentina and Brazil.
"The soya market is firm on rumours of a raise in import prices of oils and slower market arrivals of soyabean," said a trader based in Indoor, the centre for soyabean trade.
India fixes base prices to calculate customs duties to prevent the loss of revenue due to under-invoicing by some importers. Traders pay import duties on base values irrespective of the prices paid for the oil. India, the world's leading edible oil importer, buys nearly half of its annual needs of about 11 million tonnes from abroad. Traders said the market was also firm because of fewer arrivals of bean from the new crop because of local festivals.
Wheat futures rose with government stocks falling and consumption rising. The October wheat contract at the NCDEX rose 3.20 rupees to 797.20 rupees per 100 kg.
The November contract was 4 rupees higher at 813.40. "Wheat supplies are coming down and the next harvest is due only in March," one trader said.
The Food Ministry said, as of September 1, India had 11.3 million tonnes of wheat and 7.07 million tonnes of rice. Indians tend to consume about 1.5 million tonnes of wheat a month but consumption increases in the north in the winter months, beginning November.
Sugar futures rose as stocks with mills fell and sugarcane crushing started the new season at a slow pace. October sugar at the NCDEX rose 6 rupees to 1,855 rupees per 100 kg, while the November contract was up 16 rupees at 1,834 rupees.
"Most commodities including sugar are on the rise because of higher consumption in the season," one sugar dealer said. Indian mills expect sugar output in the new season that began in October to bounce back to 18-19 million tonnes from about 13 million in the previous season.
Gold futures were slightly lower. December gold at India's Mullet Commodity Exchange (MCX) lost 14 rupees to 6,819 rupees per 10 grams, while October gold lost 17 rupees, down to 6,888 rupees.
Gold prices held steady in Asia on Friday amid light bargain hunting, but trade was thin ahead of US inflation data that could set the direction for the US dollar and bullion.
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