Indian soyabean and soyaoil futures climbed on Wednesday, amid concern about crops following a delay in rains in the major growing region and higher global futures. Sugar dropped for the third consecutive day as the monsoon spread to western regions from southern parts, lowering the consumption of soft drinks rich in sugar, traders said.
Silver futures crawled up with a rise in spot prices. July refined soyaoil at the Multi Commodity Exchange (MCX) was trading at 385.90 rupees per 10 kg up 3.40 rupees.
National Commodity and Derivatives Exchange's (NCDEX) August soyabean rose 11.10 rupees to 1,367 per 100 kg. "Soyabean sowing has been delayed in Madly Prudish by more than a week as the monsoon has not yet reached the state," said a broker in the central Indian city of Indore, the hub of the country's soya trade.
The monsoon generally arrives in the state on June 15. Traders said any further delay in the rains could hit sowing operations and affect yields of soyabeans in the state that accounts for about two-thirds of India's production.
Firm international futures also supported local contracts. Chicago Board of Trade soyabean futures surged nearly 3 percent to a fresh 11-month high in Asian trade, as fund buying regained strength amid concerns about dry weather in key US production areas.
Malaysian crude palm oil futures were up 1 percent in the sugar futures continued to fall, after rising 4 percent last week, on profit taking by traders and rains in the western state of Maharashtra, India's top sugar producer.
"There has been a technical correction," said a Bombay-based broker, adding many people who had bought futures at about 1,640 rupees per 100 kg were liquidating their positions.
NCDEX's July sugar fell 5 rupees to 1,772, while August was down 6 rupees at 1,796. July futures have fallen about 3.5 percent this week. Silver tracked world prices, while gold contracts were mixed.
MCX's July silver rose 10 rupees to 10,739 per kg. August gold dropped 5 rupees to 6,244 per 10 grams, but October was up 4 rupees at 6,283.
Spot gold was almost flat at $438.30/$439 an ounce, compared with $438.50/$439.50 in New York on Tuesday.
Silver was marginally up at $7.27/$7.30 from $7.25/$7.28 an ounce. "I am bullish on gold," said Prithvi Raja Kothari, a Bombay-based bullion dealer, adding spot gold was expected to hover in the $435-$443 range this week.
Gold bounced from a low of $433.70 in New York on Monday as funds appeared to be shifting from the euro to gold and other commodities due to uncertainty over the currency and monetary policies in Europe, traders said.