Indian soyaoil futures were trading in a narrow range on Monday afternoon, tracking a weak Malaysian palm and on hopes duty-free soyaoil imports will depress prices, analysts said. However, some buying at dips was supporting the futures, analysts said.
Indias decision last week to allow duty-free soyaoil imports is expected to raise supplies in the open market. "There may be an increase in imports in the next two months after the duty-free decision," said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd.
At 2:42 pm (0912 GMT), the April contract was up 0.18 percent at 445.20 rupees ($8.71) per 10 kg on the National Commodity and Derivatives Exchange. The May contract fell 0.03 percent to 442 rupees. Prices in the spot market in Indore, a hub for soyaoil trade in India, was steady at 43,000 rupees per tonne.
Demand in the spot market may ease as supplies of rapeseed oil, a substitute for soyaoil, rise following large-scale crushing of rapeseed. The benchmark June palm oil futures on Bursa Malaysia Derivatives Exchange was down 1.16 percent at 1,967 ringgit a tonne at 2:43 pm. The July soyaoil futures on Chicago Board of Trade was down 0.89 percent at 32.43 cents per pound.