Indian soyaoil futures dip; sugar rises

08 May, 2007

Indian soya oil futures were pulled down on Monday by falls in foreign markets, while sugar futures found some buyers but remained well below levels of this year.
May soyaoil futures were down 3.30 rupees to 485.20 per 10 kg on the National Commodity and Derivatives Exchange (NCDEX), and June futures were down 2.55 rupees at 478.95 "Indian soya trade has fallen, tracking trends in overseas markets where bearish sentiments set in as traders realised profit," an analyst with a Mumbai-based brokerage said.
Malaysian crude palm oil futures were down 2 percent in late trade on Monday as players took profit after strong gains last week that had pushed the market to eight-year highs.
Prices of Soya and palm oils often move in tandem as both compete for the same market. India, a top vegetable oil importer, buys palm oil from Malaysia and Indonesia, and soya oil from Brazil and Argentina.
May sugar futures on the NCDEX were up 9 rupees at 1,241 per 100 kg still down almost 16 percent from its March 31 close and June futures had risen 6 rupees to 1,257.
The prospect of a record crop of 26 million tonnes in the year to September 2007, up from 19.3 million tonnes last season, has weighed on the market. "Sugar has fallen so sharply, some fresh buying was inevitable," the analyst said.

Read Comments