Indian soyaoil futures hit fresh contract highs on Thursday on concerns over global edible oil supplies from South America and Asia, and helped by an increase in domestic demand ahead of a marriage season.
By 3:36 pm (01006 GMT), the January contract on the National Commodity and Derivatives Exchange was up 0.80 percent at 551.00 rupees ($13.98) per 10 kg, retreating from the day's high of 553.2 rupees.
February was up 0.96 percent to 560.20 rupees, but down from the day's high of 562.3 rupees. "Soya futures are tracking global factors," said Sonal Khattri, an analyst with Ventura Commodities Pvt Ltd. Soya oil output in Argentina is threatened by dry weather, while monsoon floods in Malaysia are battering palm plantations.
Argentina and Malaysia are major producers of edible oils, while India is a leading importer. Indian edible oil imports for the fiscal year ended October rose 6.7 percent to 4.71 million tonnes. The country imported 2.99 million tonnes of crude palm oil up from 2.37 million tonnes the previous year.
Spot prices rose 0.82 percent to 545.65 rupees per 10 kg as demand picked up ahead of an auspicious time for weddings in the middle of January, two analysts and a trader said. Malaysian March palm contract on the Bursa Malaysia Derivatives Exchange was trading up 1 percent at 3,097 ringgit a tonne, retreating from the day's high of 3,150. Palm and soya oils are related commodities and their prices often move in tandem.
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