Edible Oil: Soybean jumps to 2-wk high on supply worries, improved demand
: Soybean jumped to two-week high in morning trades Monday on supply worries of the crop in domestic market and on improvement in festive demand, said analysts.
"Soybean prices were supported by lower supply of the crop in domestic market and on improved festive demand from oil cursher," said Ajay Kumar Kedia an analyst with Kedia Commodities.
Soybean production in Madhya Pradesh, the biggest crop growing state, will be down by 15-20% this year due to water logging and insufficient sunlight, Soybean Processors Association of India (SOPA) said in press release after conducting a ground survey in mid Western Part of Madhya Pradesh, and parts of Vidarbha and Marathwada in Maharashtra.
Due to low rains immediately after sowing and then heavy rains which caused water logging soybean crop in around 360,000 hectares has been destroyed completely.
"The vegetative growth of plants and formation of pods has been affected adversely due to water logging and insufficient sunlight," said Davish Jain a Chairman of SOPA.
Total area sown in Maharashtra as per SOPA stood at 3.47 million hectare compared to 3.79 million hectare a year ago.
Prices of the bean were also up as demand in the spot market was as trading activity picked up after heavy rains, said analysts.
With good progress of monsoon across the nation and festive season around the corner we expect the demand for bean from oil crusher to remain strong.
During the coming days festivals like Raksha Bandhan, Ganesh Chaturthi and Janmaashtami increases the consumption of fried items.
At 11:35AM soybean for October delivery jumped 1.38% to Rs 3,156 per 100 kilograms on the National Commodity and Derivative Exchange (NCDEX), its highest since July 31.
Crude palm oil slumped to five-year low in morning trades on oversupply woes from Malaysia, the second biggest palm oil producer, said analysts.
Malaysia's crude palm oil output rose in July and end-July stockpiles climbed, a data released by the Malaysian Palm Oil Board showed.
Palm oil output jumped 2.84% to 1.81 million tons as on July end compared to 1.76 million tons a month earlier.
Palm oil stockpiles also rose 5.11% to 2.26 million tons as on July end compared to 2.15 million tons a month ago, data showed.
Malaysia's palm-oil exports slipped 5.32% to 1.60 million tons in July from the previous month.
Prices of the palm oil were also down on higher supply in domestic market following robust imports data, said analysts.
Crude palm oil imports climbed to 765,865 tons in July, its highest in two-month, compared to 527,648 tons in the same period a month ago, data release from the Solvent Extractors Association (SEA) of India showed
Prices of the oil were also under pressure after Kuala Lumpur Kepong, the biggest palm oil producer in Malaysia, raised crude palm oil July output to 69,798 tons.
Meanwhile, government trimmed crude palm oil tariff to $593 per tons, government data showed.
CPO for August delivery dropped 0.46% to Rs 390.30 per 10 kilograms on the MCX.
Soyoil prices jumped to four-week high in morning trades Monday after the Indian rupee weakened against the dollar, which dents prospects of higher imports, said analysts.
At 11:35AM dollar/rupee traded at Rs 65.22/$1 compared to previous close of Rs 65/$1.
Meanwhile, government trimmed soyoil tariff to $700 per tons, government data showed.
Soyoil for October delivery jumped 0.34% to Rs 566.65 per 10 kilograms on the NCDEX.
RM seed climbed to two-week high in morning trades Monday on supply concerns, said analysts.
RM seed prices were traded higher in supply worries and on improved China demand, said analysts.
According to latest USDA report, global rapeseed production is forecast to decline 3.5 million tons in 2015/16 as a slight decrease in area reduces total output to 68.1 million tons.
In Europe, Oil World has estimated the production of 22 million tons as compared to 24.1 million tons in 2014/15.
In domestic market prices of mustard seeds were also supported by lower supply after arrivals were low at 500,000 bags compared to 600,000 bags earlier.
Prices of rape seed were also supported after all India arrivals in RM seed declined and were reported steady at 70,000 bags compared to Wednesday's level. In Rajasthan too the arrivals fell to 37,000 bags compared to previous day's level.
RM seed for September delivery climbed 0.65% to Rs 4,191 per 100 kilograms on NCDEX.
