Indian soyaoil futures firmed on Friday, and there could be more rises next week as domestic prices catch up with imported soyaoil, analysts said. At 2:40 pm (0910 GMT), the July contract on the National Commodity and Derivatives Exchange (NCDEX) was up 0.3 percent at 490.5 rupees per 10 kg. The August contract rose 0.43 percent to 495.25 rupees.
"The imported soyaoil is priced at over 456 rupees ($11.2) per 10 kg against 440 rupees in the Mumbai market. The difference should lead to rise in prices in coming days," said an analyst at IL&FS Investsmart Commodities Ltd.
The market was also underpinned by firm palm oil futures in the Malaysian market and overnight gains in soyaoil futures in Chicago Board of Trade. Soyaoil and palm oil compete for similar markets their prices move in tandem.
"Strong fundamentals and bullish overseas market will keep Indian market in the positive next week. The August contract should touch 500 rupees by Saturday or early next week," Dinesh Somani, analyst with Indiabulls Commodities Pvt Ltd, said.
In Malaysia, the benchmark September palm oil contract at Bursa Malaysia Derivatives Exchange rose over 1 percent to 2,414 ringgit ($695.95) a tonne on Friday. The July soyaoil futures on Chicago Board of Trade gained 61 cents per pound to close at 35.57 cents on Thursday.
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