Poor demand, global cues drag soya oil

Our Correspondent Indore | Updated on August 08, 2011

soya oil

Weak foreign markets and subdued local demand kept soya oil sluggish on Monday. Negative projections by Chicago Board of Trade (CBOT) added to the bearish mood.

Soya refined was quoted at Rs 630-632 for 10 kg in Indore mandis on Monday, against Rs 630-635 on Saturday. Trading for the oil, however, remained dull at the current price level primarily because of weak foreign markets and lack of buying in the physical market. Resellers sold soya refined at Rs 627-628 for 10 kg.

Soya solvent also declined by Rs 5 at Rs 595-600 for 10 kg on drab trading. Speculation lifted soya-oil futures. August contract of soya refined closed higher at Rs 646.40 on National Board of Trade, after opening at Rs 643.90 in the morning. August and September contracts of soya oil rose to Rs 654.50 and Rs 645 on the National Commodity and Derivatives Exchange.

Beside weak foreign markets, the recent spate of monsoon rains in soyabean-producing regions of Madhya Pradesh have improved prospects of the harvest, leading to the bearish sentiment, said a soya-oil trader. Trade experts, however, differed as they see the coming festive season to push up demand for soya oil.

Soyabean traded low on sluggish demand at the plant level and weak projections by CBOT. Soyabean traded at Rs 2,280-2,320 a quintal on Monday against Rs 2,300-2,340 a quintal on Saturday. Plant deliveries of soyabean also declined to Rs 2,380-2,400 a quintal on weak demand for soya de-oiled cake, which sold at Rs 18,300 a quintal in the port on Monday, against Rs 17,200 a quintal in the domestic market.

Heavy rains in parts of the State hit arrivals of soyabean in State ex Indore mandis at 20,000 bags on Monday against 35,000 on Saturday. A thousand bags arrived in Indore mandis.

Published on August 08, 2011

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