Indian gold futures decline, soyaoil down on stocks

27 Sep, 2005

Indian gold futures fell on Monday tracking global markets and soyaoil prices were marginally down on comfortable stocks, brokers said.
Wheat prices slipped due to profit taking and sugar prices were mixed on lack of buying interest. October gold at the Multi Commodity Exchange was down 78 rupees to 6,576 rupees per 10 grams.
The December contract fell 69 rupees to 6,626 rupees. Gold lost ground in Asia on Monday, extending a pullback from last week's highest level in nearly 18 years as the US dollar strengthened and fears of economic damage from Hurricane Rita eased.
The dollar's gain against European currencies could add to the pressure on gold in more active European trading, bullion dealers said.
Spot gold shed more than $1 during Asian trading to around $460.00/460.50, some $15 below on Thursday's high of $475.
Soyaoil prices were down as the country had a huge carryover stock of around 700,000 tonnes this year, compared with an annual average of about 300,000 tonnes, one Indoor-based broker said.
October soyaoil at the MCX fell 1.60 rupees per 10 kg to 361.85 rupees. The October contract at the National Commodities and Derivatives Exchange (NCDEX) was trading at 362.55 rupees, down 1.65 rupees.
"Prices are down but there will be upward movement when the carryover stock gets utilised because the new crop is delayed," he said.
Sowing of the soyabeans crop in key producing central and western regions was delayed this year because of erratic monsoon rains.
Harvesting, which has started in some parts, is expected to pick up by the end of October. Wheat prices, which had risen on Friday, fell on profit taking.
The October wheat contract at the NCDEX fell 3.60 rupees to 776.20 rupees per 100 kg. The November contract slipped by a similar amount to 790.20 rupees.
"Wheat demand in the physical market has started rising which should drive the futures market up in the coming days," one Ahmedabad-based broker said.
Sugar prices were mixed because of lack of buying interest, traders said. "Volumes are low because investors are moving away from sugar as they don't expect good returns," a dealer said.
November sugar at the NCDEX was trading unchanged from the previous close of 1,776 rupees per 100 kg. The October sugar contract rose 1 rupee to 1,807 rupees.
"Out crop looks good and the stock position is comfortable, prices are unlikely to rise much," he said. India's sugar output is expected to rebound to about 18 million tonnes in the year to September 2006, from around 13 million tonnes this year.
The country has imported about 2.65 million tonnes of raw sugar in the past two years to meet a shortfall in supplies.

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