Indian soyaoil up on global cues, sugar futures rise

11 May, 2007

Indian soyaoil futures bounced back on Thursday in line with international markets, which were pushed higher by a drop in Malaysian palm stocks. Sugar rose due to a correction after prices had bottomed out. May soyaoil futures on the National Commodity and Derivatives Exchange (NCDEX) were up 2.85 rupees at 483 per 10 kg.
June futures rose 3.35 rupees to 479.25. A Mumbai-based analyst said soya was up tracking trends in Malaysia, where palm prices firmed due to a fall in stocks. Prices of palm and soya oils usually move in tandem as both compete for the same market. The Malaysian Palm Oil Board said the country's end-April stocks fell 11.65 percent from a month, while palm oil output rose 4.11 percent, less than expected.
India, one of the world's leading importers of vegetable oils, buys palm oil from Malaysia and Indonesia, and soyaoil from Brazil and Argentina. The analyst said sugar rose, but bearish sentiment would soon return as mills were saddled with huge stocks from a bumper harvest. May sugar futures on the NCDEX were up 3 rupees at 1,229 per 100 kg.

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