Soya oil heats up as demand emerges

Our Correspondent Indore | Updated on February 21, 2011


Soyabean oil prices inched up on Monday on emergence of domestic demand . For the past one week, soya refined oil prices on the spot continue to hover between Rs 600 and Rs 605 for 10 kg. On Monday, however, soya refined oil gained marginally at Rs 603-608 on improved demand. However, bulk trading was done at prices between Rs 600 and Rs 602.

Refined soy oil futures saw a sharp decline last week on strong selling pressure in unison with a weak soyabean market. In resale, soya refined oil was quoted at Rs 598-601.

Soya solvent ruled steady at Rs 575-Rs 580 on scattered demand.

Compared with soya oil prices in the physical market, soya oil futures gained on the back of increased buying interest. On the NBOT, soya oil March contract closed Rs 5 higher at Rs 643.50/10 kg. Similarly, soya oil futures on the NCDEX closed higher with March and April contracts closing at Rs 646 and Rs 655.50 respectively.

Traders attribute sluggishness in soya oil to slack demand as well as decline in buying interest at higher rates. On the other hand, bearish sentiments continued in soyabean, though local mandis on Monday saw a marginal gain with plants evincing interest even at rates as high as Rs 2,400 a quintal.

Plant deliveries of soyabean on Monday were quoted at Rs 2,400-2,425 a quintal, while soyabean prices across other mandis were Rs 2,380-2,440 a quintal, while at Indore mandis, soyabean quoted at Rs 2,300-2,380 a quintal.

Bearishness in soya seeds has primarily been attributed to weak support to soya meal in the export market. The port rate on Monday was quoted at Rs 18,700 a quintal.

Published on February 21, 2011

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