February 5, 2008

India soy rallies on strong Chinese demand and high rival prices

Indian soy oil and soy futures shoot up on Monday on anticipated jump in global prices when China steps up soy purchase in the coming weeks and the sharp rise in rival palm oil prices from Malaysia.

The February soy oil contract on the National Commodity and Derivatives Exchange hit a record of INR598.3 (US$15.25), while March contract strengthened to INR607.3 (US$15.47), Reuters reported.

Spot prices in the central city, Indore, climbed 0.7 percent to INR56,600 (US$1,442) per tonne as Malaysia's April palm contract ended up 3.5 percent at MYR3,345 (US$1,035) per tonne. 

Traders said that China would import more after the Lunar New Year, which starts on February 7, after a meager domestic harvest.

Below are the closing prices of soy oil futures per 10 kilogramme and soy futures per 100 kg on National Commodity and Derivatives Exchange: