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India Edible Oil: Mixed; soybean up tailing upbeat sentiment on CBOT

Friday, May 24

 

By Kaushal Verma

 

NEW DELHI – Futures contracts of soybean and refined soyoil rose on domestic exchanges today, while those of crude palm oil and mustard fell.

 

Soybean futures on the National Commodity & Derivatives Exchange settled higher, in line with gains in key contracts on the Chicago Board of Trade, analysts said.

 

Prices on the American exchange rose due to improved demand at lower price levels, after a sharp fall following reports that the US is considering large aid payments for soybean farmers in the US, the top grower. This had triggered fears of higher planting. The US-China trade war also weighed on prices earlier in the session.

 

Back home, demand from crushing plants and paucity of stocks in spot markets lifted soybean prices, traders said.

 

Refined soyoil on the NCDEX edged higher due to strong demand during the ongoing Ramzan amid downbeat imports, traders said.

 

Bucking the trend in the soy complex, crude palm oil on the MCX fell today due to the government's plan to give a thrust to production of the tropical oil in the country by adding more area under oil palm trees, analysts said.

 

India has 325,000 ha under oil palm trees at present, and it may rise to 350,000 ha in 2019-20 (Apr-Mar), a government official said.

 

Weakness in crude palm oil futures on the Malaysian exchange also weighed on sentiment on MCX, traders said. Crude palm oil futures on Bursa Malaysia Derivatives ended a tad lower today due to a strong ringgit against the dollar, analysts said. A strong ringgit makes the commodity expensive for buyers holding other currencies.

 

After hitting a fresh three-month high of 3,952 rupees per 100 kg in the previous session, the June mustard seed contract on NCDEX closed a tad lower following subdued demand at higher prices, traders said.

 

The following table details prices of edible oils and oilseeds, at 1750 IST, in rupees, and the difference compared with the previous session:

 

CONTRACT

UNIT

(in kg)

EXCHANGE

PRICE

(rupees)

CHANGE

(in rupees)

Soybean Jun

100

NCDEX

3,738

17.00

Refined soyoil Jun

10

NCDEX

744.20

2.60

Crude palm oil Jun

10

MCX

512.50

(-)1.90

Mustard Jun

100

NCDEX

3,940.00

(-)4.00

 

End

 

US$1 = 69.52 rupees

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

 

Edited by Akshit Harsh

 

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This copy was first published on the Cogencis WorkStation

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