Indian soyaoil futures up

12 Mar, 2008

Indian soyaoil futures rose on Tuesday tracking firm Malaysian palm oil and pushed up by renewed spot buying after markets fell more than 9 percent last week. At 4:20 pm (1050 GMT), the March contract was up 2.76 percent at 687.35 rupees ($17) per 10 kg.
The April contract had risen 2.91 percent to 691.40 rupees. Spot soyaoil prices in Indore rose 1.5 percent to 65,800 rupees per tonne on renewed buying at lower levels. In Malaysia, the benchmark palm oil may contract rose 4.72 percent to 3,838 ringgit ($1,199.4) as buyers rushed in after stronger export data and an overnight jump in soyaoil and crude oil prices.
Soyaoil and palm oil are related commodities and their prices often move in tandem. A leading industry player said India might cut duty on imports of edible oils in an effort to contain rising prices. "There is a fear duties on imported edible oils may be reduced," Dinesh Shahra, managing director of Ruchi Soya Industries Ltd, said on the sidelines of a press conference.

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