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India Edible Oil: MCX Nov CPO up 1% on firm demand, overseas cues

Wednesday, Oct 30, 2019

 

By Animesh Deb

 

NEW DELHI – Futures contracts of crude palm oil rose today on Multi Commodity Exchange, in tune with firm prices on the Bursa Malaysia Derivatives, analysts said. At 1711 IST, the November contract was 1.5% higher at 594.5 rupees per 10 kg.

 

The January contract of crude palm oil on the Bursa Malaysia hit an 18-month high of 2,499 ringgits (around 42,388 rupees) per tn during the day and closed 3.4% higher at 2,498 ringgits due to robust demand from key consumers China and India, Edelweiss Agri Value Chain analyst Sudha Acharya said.

 

Expectations of rise in Malaysia's palm oil exports in October, data for which is expected on Thursday, also supported prices on the Malaysian bourse, Acharya said.

 

Soybean contracts on National Commodity and Derivatives Exchange also rose due to rise in demand for the fresh crop from stockists and oil millers, traders said. Lower arrivals of the fresh crop compared with the year-ago period supported prices of soybean. The November contract closed 0.9% higher at 3,796 rupees per 100 kg.

 

A likely disruption in supply due to continuous rainfall in some parts of Madhya Pradesh may lead to a rise of 200-250 rupees per 100 kg in soybean prices, N.K. Agarwal, an Indore based trader said.

 

In the benchmark market of Indore, soybean quoted at 3,600-3,650 rupees per 100 kg, largely steady from Thursday. Markets were shut from Friday till Tuesday on account of Diwali. Arrivals were also largely steady from Thursday at 5,000 bags (1 bag = 100 kg).

 

Futures contracts of refined soyoil on the NCDEX rose tracking global prices and on hope of higher demand from European countries for biodiesel blending, Kedia Comtrade head Ajay Kedia said. At 1714 IST, the November delivery refined soyoil was 0.9% higher at 774.30 rupees per 10 kg.

 

Like all other edible oil components, mustard contracts on the NCDEX also rose due to overall bullishness in the edible oil sector and upbeat purchases by oil millers in the spot markets. Traditionally mustard demand remains strong during winter.

 

Rise in minimum support price for mustard by 225 rupees to 4,425 rupees per 100 kg also supported mustard prices on the domestic bourse, analysts said.

 

Sentiment for overall edible oil sector is likely to remain bullish during next few sessions as demand for all the components is seen firm, Acharya added.

 

The following table details prices of edible oils and oilseeds at 1724 IST, in rupees, and the difference compared with the previous session.

 

CONTRACT

UNIT

(in kg)

EXCHANGE

PRICE

(rupees)

CHANGE

(in rupees)

Soybean Nov

100

NCDEX

3,796.00

32.00

Refined soyoil Nov**

10

NCDEX

774.30

6.80

Crude palm oil Nov**

10

MCX

594.30

8.40

Mustard Nov

100

NCDEX

4,298.00

19.00

** Trade in soyoil and crude palm oil futures will end at 2100 IST

 

End

 

US$1 = 70.88 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

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