The Hindu Business Line : Soya seen up in short term

Mumbai, July 16 Futures of soya complex – soyabean and refined soya oil – on NCDEX showed signs of turning strong during the week ended Friday and are expected to trade higher in the short to medium term.

Soyabean for July delivery rose by Rs 84 per quintal to Rs 1,663 per quintal on Friday from Rs 1,579 on July 2. Soy oil July futures gained over one per cent to Rs 500 per quintal over the week.

Refined soya oil futures on NCDEX have been tracking the recent gains in the Chicago Board of Trade’s soya complex and strong closing of Malaysian palm oil futures.

On Wednesday, CBOT July soybean futures ended at $8.91 (Rs 360) a bushel, up 2 cents from Tuesday on weather concerns. The benchmark September crude palm oil contract on the Bursa Malaysia rose to a five-week high of 2,615 ringgits (Rs 30,693) per tonne, up 31 ringgits (Rs 364) from Wednesday, on fears of lower edible oil production.

India imported around 2 lakh tonnes of crude soy aoil in June, up 54 per cent over last year’s figure. Crude palm oil imports were about 2.20 lakh tonne in this June, down 8.3 per cent from a year earlier.

High palm oil prices are forcing traders to shift to soya oil imports. “Soya oil imports will rise as after the recent rally in palm oil prices, it has become cheaper than palm oil,” said a trader.

Moreover, the effective import costs of soya oil are much less than palm because of repeated reductions in duties and freezing of the base import price, he added.

“Higher volume in soya oil futures and the present up trend together show prices are expected to gain further. It has been moving up continuously from Rs 307 to Rs 508 levels and expected to continue its up trend and may test Rs 530-535 and then Rs 545 in the short to medium term,” said a Karvy Comtrade report.

Soyabean

“Reports of soya crop damage in Maharashtra due to the rains is aiding firm trend in futures. The counter is expected maintain a firm trend in the coming days,” said a Share Khan report.

The Chicago Board of Trade soyabean futures ended higher on Thursday, rallying to new highs for the fourth day in a row as the market added a risk premium to prices.

July soyabeans settled 19 cents higher at $9.10 per bushel and November soyabeans finished $18.45 cents higher at $9.41 per bushel. August soyameal settled $7.30 higher at $253.70 per tonne.

More Stories on : Oilseeds & Edible Oil | Commodity Exchanges

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Coffee research body develops new hybrid

Dumping levy effect

Supply fears help spot rubber recover

TN sugar industry seeks Govt intervention

Coonoor tea sales fetch lower returns

Reliance Retail enters dairy sector with liquid milk

June edible oil imports up

Bring Pvt picks up 7.5% in KS Oil

Soya seen up in short term

Robusta, without caffeine!

FMC to look into issues affecting hedging

ICAR in focus

Agri export zones, a partial success

‘Nickel could drop further, copper may rise’