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Sunday, December 30, 2007
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Commodity News
Dec 28 2007 7:26PM
UPDATE -1 India soy futures hit new highs on palm import ban

(Updates to close)

MUMBAI, Dec 28 (Reuters) - Indian soyoil futures hit fresh intraday contract highs for a second consecutive session tracking strong Malaysian palm and after a ban on imports of palm oils was extended to all ports in southern Kerala state.

The January contract <NSOF8> on the National Commodity and Derivatives Exchange hit a fresh intraday contract high of 559.2 rupees per 10 kg, while February <NSOG8> touched a new intraday contract high of 566.5 rupees.

Malaysian March palm contract <KPOH8> on the Bursa Malaysia Derivatives Exchange was up 1 percent at 3,125 ringgit a tonne, as strengthening crude oil and firm demand boosted prices. See [ID:nKLR267622].

Palm and soy oils are related commodities and their prices often move in tandem.

"The (Kerala) ban will surely impact prices of the imported crude palm oil in the short term ... prices will rise," an analyst with a Mumbai-based brokerage said.

The federal trade ministry, which in October stopped palm oil imports at the state's Kochi port -- where 70,000 tonnes to 80,000 tonnes arrive annually -- extended the ban to all ports in the state, according to a Dec. 24 statement.

The ban was imposed after lobbying by producers of rival coconut oil, prices of which have fallen over the past two years.

Indian is a major edible oil importer, and its overseas purchases for the fiscal year ended October rose 6.7 percent to 4.71 million tonnes. The country imported 2.99 million tonnes of crude palm oil up from 2.37 million tonnes the previous year.

Following were the closing prices of soyoil futures <0#NSO:> per 10 kg and soybean futures <0#NSB:> per 100 kg on National Commodity and Derivatives Exchange:

Contract Reuters code Closing price Change in %

=====================================================

Soyoil

Jan <NSOF8> 558.60 1.23

Feb <NSOG8> 566.05 0.91

Soybean

Jan <NSBF8> 2,044.50 2.40

Feb <NSBG8> 2,074.50 2.04

(Reporting by Sourav Mishra, Editing by Mark Williams & Prem Udayabhanu) (([email protected]; tel: 91 22 6636 9241; Reuters Messaging: [email protected]))

Keywords: INDIA SOYOIL FUTURES/

  Source:   

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