Indian soyaoil futures rose Tuesday, lifted by gains in Malaysian palm oil prices and higher demand in the spot market on a forecast that supplies of rapeseed oil, a substitute, may be lower than expected. At 1:29 pm (0759 GMT), the March contract was up 0.71 percent at 461.5 rupees ($9) per 10 kg on the National Commodity and Derivatives Exchange, extending a rise of 2.3 percent over the three sessions to Monday.
April futures had risen 0.86 percent to 459.15 rupees. "Soyaoil futures are projected to trade on a positive note for the day on account of continued buying interest supported by robust demand," brokerage Karvy Comtrade Ltd said in a note. Prices of soyaoil solvent in the spot market in central city of Indore, a hub for soyaoil trade in India, rose about 0.5 percent to 40,500 rupees per tonne.
Spot market demand was boosted by gains in international markets, an expected slowdown in edible oil imports in March and expectations of a fall in supplies of rapeseed oil, traders said. Indias 2008/09 rapeseed crop was unlilely to exceed 6 million tonnes, down from an earlier forecast of 6.4 million tonnes and warm weather was expected to reduce the oil content of the crop, a top industry official said on Monday. Benchmark June palm oil futures on Bursa Malaysia Derivatives Exchange was up 1.05 percent at 1,922 ringgit a tonne at 0759 GMT.
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