Indian soyaoil futures rose on Thursday on expectations a jump in crude oil prices would result in more diversion of soyaoil for bifocal use, which also bolstered rival Malaysian palm oil. Traders said the rise in futures was limited by market talk the federal government may reduce import duties on edible oils to tame prices.
At 2:45 pm (0915 GMT), the November futures contract on the National Commodity and Derivatives Exchange was up 0.48 percent at 507.80 rupees ($12.9) per 10 kg.
December futures were up 0.62 percent at 511.90 rupees, after rising to 513.80. High crude oil prices will boost bifocals like soyaoil, but the government may intervene and reduce import duties on edible oil, analyst Rave Bhutan at ICICI Direct said.
US crude oil was trading up 1 percent at $95.48 per barrel. In July, the government had reduced import duty on crude palm oil to 45 percent from 50 percent; and to 40 percent from 45 percent on soyaoil.
India, which annually consumes about 13 million tonnes of edible oils, imports more than 40 percent of its need mostly in the form of palm oil from Indonesia and Malaysia and soyaoil from Argentina and Brazil.
Refined soyaoil prices in the central city of Indoors have risen almost 5 percent to 48,800 rupees a tonne since the end of September even after crushing began in the main growing states of Madly Prudish and Maharashtra, a trader said. January palm oil futures on the Bursar Malaysia Derivatives Exchange rose 1.39 percent to 2,920 ringlets ($884.8) due to rise in crude oil prices.