Indian soyaoil futures firmed up on tight supplies on Monday while gold and sugar were steady in thin trade because of festival holidays, dealers said. April soyaoil at the Multi Commodity Exchange (MCX) was up 0.18 percent at 390.60 rupees per 10 kg. The National Commodity and Derivatives Exchange (NCDEX) April contract was higher by 0.21 percent at 390.35 rupees per 10 kg.
"Tight rapeseed supplies are driving up soyaoil futures," said a trader based in Indore, the hub for the country's soyabean trade. "Oil content in rapeseed is reported to be lower with rains affecting the seed."
He said this was pushing up prices of soya and other oils, which were expected to remain, firm this week because of lower market arrivals in the Holi festival season.
"All this will mean less oil on the balance sheet," said one trader. Dealers said gold futures were steady in line with trends in the international market and absence of local factors to spur demand. April gold futures were down 12 rupees at 6,165 rupees per 10 grams, while at the Multi Commodity Exchange April futures was also down by 12 rupees at 6,116.
Gold pushed up to around $426 an ounce in thin holiday-affected trade in Asia on Monday but a strong US dollar limited gains. The US market was closed on Friday and reopens on Monday, after Easter. Australia, Hong Kong and London markets are closed for Easter holidays until on Tuesday.
Traders said sugar futures were virtually unchanged but physical demand would grow with consumption expected to increase in the summer months from April. NCDEX's April sugar was down 6 rupees at 1,896 rupees per 100 kg. Traders said the government's release of sugar for free sale for the April-June quarter did not have much effect in the market as supplies were adequate.
India last week released 3.8 million tonnes of sugar for sale in the domestic market in the quarter beginning April to help ensure adequate supplies and keep prices under check.
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