New Delhi: Indian soyoil futures fell on Tuesday on as strength in the rupee raised concerns of greater competition from imports, while the prospect of record output this year remained a weight on sugar futures.
At 0836 GMT, May soyoil futures were down Rs0.60 at 484.80 per 10 kg on the National Commodity and Derivatives Exchange (NCDEX).
“Indian soyoil has bucked the overseas trends due to a surge in rupee,” an analyst with a Mumbai-based brokerage said. “Falling rupee may lead to cheaper imports.”
The rupee hit 40.53 per dollar on Monday, its highest since May 1998. India, one of the world’s leading importers of vegetable oils, buys palm oil from Malaysia and Indonesia and soyoil from Brazil and Argentina.
Palm oil constitutes more than 50% of India’s annual edible oil imports of over 5 million tonnes, which make up almost half of the country’s annual edible oil consumption.
May sugar futures on the NCDEX were down Rs1 at 1,245 per 100 kg, while the June futures had fallen Rs2 to 1,259.
India, the world’s second-largest sugar producer after Brazil, is likely to churn out a record 26 million tonnes in the sugacane crushing season that ends in September 2007, up from 19.3 million tonnes last season.