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India soyoil at new highs on expected supply squeeze.


Date: 18-04-2009
Subject: India soyoil at new highs on expected supply squeeze
 MUMBAI, April 17 (Reuters) - Indian soyoil futures rose to new highs on Friday afternoon as spot demand surged tracking firm Malaysian palm oil and on expectation of a supply squeeze, analysts said.

At 2:03 p.m., (0827 GMT), the April contract NSOJ9 was up 2.24 percent at 502 rupees ($10.1) per 10 kg on the National Commodity and Derivatives Exchange. The contract had earlier risen to a new high at 502 rupees.

The benchmark May contract NSOK9 was up 2.91 percent at 500.65 rupees. It touched a new high at 500.8 rupees.

Prices in the spot market in Indore, a soyoil hub, rose 1.26 percent to 48,100 rupees per tonne.

The benchmark July contract KPOc3 on the Bursa Malaysia Derivatives Exchange rose 3.1 percent to 2,431 ringgit per tonne at 0829 GMT.

Stung by twin woes of erratic weather and aggressive replanting, palm oil traders are bracing for a supply squeeze in the months ahead, spurring importers to stock up ahead of an anticipated rise in demand. See[ID:nKLR357693]

July soyoil futures BON9 was up 0.94 percent at 37.40 cents per pound during the electronic trade. 


Source : REUTERS INDIA

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