MUMBAI: Indian soyoil futures climbed 1 percent on Monday on strong demand from bulk users who preferred soyoil over palm oil in the winter season.
A rise in palm oil prices in overseas markets further boosted sentiment.
Soybean and rapeseed rose due to thin supplies and robust demand, though prospects of bumper rapeseed crop capped the upside.
As of 0842 GMT, Malaysian palm oil futures were up 0.54 percent at 2,413 ringgit per tonne.
India meets more than half of its edible oil requirement through imports, which largely constitute palm oil.
"Demand is strong for soyoil due to winter season. Consuming industry is replacing palm oil by soyoil in northern India," said Prasoon Mathur, a senior analyst with Religare Commodities.
Palm oil is the preferred oil of bulk consumers in India, but it freezes quickly in the winter season.
The actively traded soyoil contract for February delivery on India's National Commodity and Derivatives Exchange was 0.75 percent higher at 729.05 rupees per 10 kg, after rising to 731 rupees earlier in the day.
The most-active soybean contract for February delivery was 0.96 percent higher at 3,269 rupees per 100 kg, while rapeseed contract for April rose 1.77 percent to 3,515 rupees per 100 kg.
At the Indore spot market in Madhya Pradesh, soyoil was 5.9 rupees higher at 751.8 rupees per 10 kg, while soybean climbed 29 rupees to 3,266 rupees per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed dropped by 198 rupees to 4,118 rupees.
India has slapped a 2.5 percent import duty on crude edible oils, a move taken to stem overseas purchases by the world's top vegetable oil buyer and protect its domestic oilseed growers.
Comments
Comments are closed for this article.