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  • Nov 1st, 2005
  • Comments Off on Indian soya futures firm, gold shrugs off bombs
Indian soya futures were firm on lower arrivals of soyabean and market talk the government was considering a change in tariff values of oils, while gold fell marginally with little impact from bomb blasts in the capital.

Wheat was firm on lower stocks and sugar gained on festival buying.

Palm oils and soya oil compete for the same markets. India buys nearly half its annual needs of about 11 million tonnes in the form of palm oils from Malaysia and Indonesia and soft oils from Argentina and Brazil.

By 0715 GMT, November soyaoil at the Multi Commodity Exchange (MCX) was up 0.60 rupees at 357.10 rupees per 10 kg. The National Commodities and Derivatives Exchange (NCDEX) December contract gained 1.20 rupees to 361.80 rupees. "The market is waiting for changes in tariff values of palm and soya oils," said a trader based in Indore.

New Delhi last amended base prices on October 15, raising prices for palm and soya oils across the board. These determine the tax importers pay. Indian traders said there was speculation the government could reduce the customs duty on crude palm oil to 65 percent from 80 percent.

Market arrivals of soyabean have also come down during the festival season, putting pressure on supplies and keeping soya prices firm, traders said.

Gold futures were lower in line with international prices. Gold fell slightly in Asia on Monday ahead of a US Federal Reserve interest-rate meeting which is likely to prompt book-squaring in the bullion market.

Spot gold was at $472.20/472.70, down slightly from $473.10/473.80 late in New York on Friday.

December gold at the MCX lost 7 rupees to 6,887 rupees per 10 grams. February gold eased 4 rupees to 6,908 rupees.

Dealers said three deadly bomb blasts in the capital on Saturday, which killed at least 59 people, did not have much impact on the bullion market.

Sugar futures were slightly firm. November sugar at the NCDEX rose 10 rupees to 1,833 rupees per 100 kg.

Traders said sugar was trading in a narrow range after the government's release of free sale sugar quota for November was along expected lines. Buying for festivals had also kept the prices firm, they said.

The government controls sugar distribution in the market by allocating fixed amounts that can be sold by producers every month.

Wheat futures rose slightly. Traders expected them to rise further in the coming weeks when demand picks up in northern states during the winter season. India's southern states largely depend on the northern producing region for wheat.

December wheat at the NCDEX rose 3.60 rupees to 830.60 rupees per 100 kg. November wheat was higher by 4.20 rupees at 819.00 rupees.

Copyright Reuters, 2005


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