Indian soyaoil futures fell on Monday as traders squared their long positions on market talk the government may ban futures trading to rein in prices.
At 3 pm (0930 GMT), the April contract was down 1.72 percent at 558.50 rupees ($14) per 10 kg, while May futures fell 2.24 percent to 550 rupees. Data on Friday showed annual inflation was at 7 percent on March 22, it's highest since December 2004, and well the 5 percent comfort zone for the central bank.
The government has cut import duties on edible oils and banned export of some grains and pulses to control spiralling prices, and traders said more measures could be taken to fight inflation.
"Investors are losing interest as they fear government may ban futures trading in edible oil," Ashish Shah, an analyst in Sushil Global Commodities Pvt Ltd, said. Traders said the fall in soyaoil futures was limited by firm prices of rival palm oil in Malaysia, where the benchmark June contract was up 2.73 percent at 3,387 ringgit ($1,063.9) as investors expected a rise in the Indian demand.
India's buys about six million tonnes of vegetable oils annually, mainly palm oil from Malaysia and Indonesia and soyaoil from Brazil an Argentina. Spot soyaoil prices in the central Indian City of Indore fell 0.36 percent to 55,100 rupees per tonne.
Soyaoil and palm oil are related commodities and their prices often move in tandem. India not to raise wheat procurement price-farm min.
CHANDIGARH: India will not increase the procurement price of wheat in the current season, the farm minister said on Monday. "Three is no question of giving bonus to farmers for wheat as the minimum support price is already higher," Sharad Pawar said.
This year the government had fixed the minimum price at 1,000 rupees ($25) per 100 kg, up from 850 rupees last year.India wheat output estimate unchanged despite rains.
NEW DELHI: India's farm secretary on Monday said the wheat output estimate for 2008 remained unchanged at 74.81 million tonnes despite recent heavy rain in key growing regions, but added the crop could have suffered some damage.
"There may be some damage because of the recent rains, but overall production estimates still remain the same," P.K. Mishra told reporters. The government last month forecast 2008 wheat output at 74.81 million tonnes, down from 75.81 million tonnes last year.
The country imported 1.8 million tonnes of wheat in 2007, lower from 5.5 million tonnes in the previous year, when the government imported the grain after a gap of six years as rising wages and changing eating habits pushed up demand.
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