Indian soyaoil futures rose on Thursday due to buying at lower levels, while sugar continued to slide on forecasts of bumper output. June soyaoil futures on the National Commodity and Derivatives Exchange were up 2.05 rupees at 477.00 per 10 kg, while May futures had gained 2.80 rupees to 483.05.
"Soya was down in the last couple of days and buying at lower levels has pushed the futures up," an analyst with a Mumbai-based brokerage said. "Soya will remain firm at least for a month on higher palm prices." Soya and palm oil prices generally move in tandem as both compete for the same market.
Palm prices in Malaysia, the world's top producer, have gained more than 9 percent this year after surging 40 percent in 2006 on the back of demand from biodiesel and food sectors. India, one of the world's top vegetable oil importers, buys palm oil from Malaysia and Indonesia, and soyaoil from Brazil and Argentina. The analyst said sugar fell on higher supplies from mills, struggling to cope with rising stocks and falling prices.
"Sugar will continue to be overly bearish," he said. The May sugar futures on the NCDEX were down 19 rupees at 1,283 per 100 kg, and June futures fell by the same margin to 1,295.
India will produce a record 26 million tonne of sugar in the year to September 2007, trade and government officials say. The country produced 19.3 million tonnes a year ago. Meanwhile, India's Tata Tea Limited said on Thursday its Tetley Group subsidiary will buy the Vitax and Flossing brands from Premium Foods in Poland as it moves to increase its share of the fast-growing speciality tea segment.