Indian soya oil consolidated gains on Friday on higher demand and a revision in base import prices of edible oils, while sugar extended a fall with more supplies arriving in the domestic market.
At 0636 GMT, the March soyoil contract at the National Commodities and Derivatives Exchange (NCDEX) was up 0.50 rupees at 377.30 per 10 kg. The April contract at the Multi Commodity Exchange (MCX) rose 1.15 rupees to 385.30.
India, the world's leading edible oil importer, raised on Wednesday the base import price of crude palm oil to $437 per tonne from $426, and that of crude soybean oil to $524 a tonne from $501.
India fixes base prices in order to calculate customs duties and prevent any loss of revenues due to under-invoicing by importers. Traders pay duties on the base value irrespective of the prices paid for the oil.
Traders said higher seasonal demand was also exerting pressure on the price of soyoil. Sugar prices extended their fall from Thursday as firms continued to sell their stocks in the domestic market ahead of the end of the financial year in March. aThe March sugar contract fell 14 rupees to 2,040. April sugar lost 16 rupees to 2,063.
Early supplies of the new wheat crop combined with expectations that the government would announce a decision on the import of 500,000 tonnes of wheat caused prices of the grain to drop.
The March wheat contract at the Multi Commodity Exchange (MCX) fell 2.80 rupees to 867.20 per 100 kg. March wheat at NCDEX lost 2.40 rupees to 839.20.
Comments
Comments are closed.