Indian soyaoil futures steady

06 May, 2008

Indian soyaoil futures shrugged off firm Malaysian palm oil prices and were little changed on Monday, as participants were worried the government may curb trading to contain 3-year high inflation. At 2:02 pm (0832 GMT), May futures on the National Commodity and Derivatives Exchange were up 0.05 percent at 570.90 rupees ($14.1) per 10 kg, while the June futures eased 0.04 percent to 571.65 rupees.
The government had scrapped import duties on edible oils and taken measures to prevent hoarding, but annual inflation in mid-April climbed to nearly 8 percent. Politicians have blamed excessive speculation for the price spiral and have called for a ban on futures trading in commodities. "The market is partially supported by gains in Malaysia but volumes have dipped and traders are waiting for signals from the government," Suresh Mantri, an analyst in Ventura Commodities Pvt Ltd, said.
In Malaysia, palm oil July futures rose 1.6 percent to 3,393 ringgit ($1,073) a tonne on fears of tight vegetable oil supplies following renewed protests by Argentine farmers and prospects of better Asian demand. Soyaoil and palm oil are related commodities and their prices often move in tandem.

Read Comments