Commodities

Poor domestic offtake drags soya oil

Indore | Updated on February 24, 2011 Published on February 24, 2011

BL25_COM2_SOYA

With the arrival of new crops such as chana and wheat, the demand for soya oil and soya seeds have declined in the past few days.

Poor domestic demand and weak foreign support have dragged soya oil prices in the local mandis by Rs 8-10 in the last one week. With soya oil March contracts hitting lower circuit in the futures market, soya oil tumbled in the physical market on Wednesday with soya refined in the spot quoted at Rs 590-595 for 10 kg. Trading in soya refined more or less remained same on Thursday on weak Malyasian palm oil futures and complete lack of buying support in the physical market. In the spot, soya refined quoted at Rs 590-592, while in the resale it was quoted at Rs 585.

Bearish sentiments also affected trading in soya solvent with its prices in the spot and delivery quoted at Rs 552-556, while for Bhopal line trading in soya solvent was done at Rs 549 for 10 kg.

Futures

In futures, soya oil traded lower on weak global cues. On the NBOT, soya oil March contract closed Re 1 lower at Rs 618 after seeing a high of Rs 625 and low of Rs 611.20 respectively. Similarly, on the NCEDX also, soya oil March contract closed lower at Rs 626.90.

In the past two days, soyabean prices have declined by Rs 75-100 with its mandis' rate on Thursday quoted at Rs 2,250- 2,300 a quintal, soyabean plant deliveries ruled firm at Rs 2,350-2,370 a quintal. Subdued demand continues in soya de-oiled cake (DOC) with its prices on Kandla port on Thursday quoting at Rs 18,400 a quintal.

Keeping in view sluggishness in soya oil and seeds, arrival of soyabean in State mandis has gradually declined with merely 35,000 bags of soya seeds being offloaded on Thursday, while in Indore mandis, arrival of soyabean was recorded at about 2,000-2,500 bags.

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Published on February 24, 2011
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