Soya oil slips on sluggish offtake

Our Correspondent Indore | Updated on December 22, 2011 Published on December 22, 2011


Soy oil ruled sluggish on weak buying support in the domestic market and decline in dollar rate even as Malasiyan palm oil futures closed higher. Against Rs 645-50, soy refined in the physical market ruled at Rs 640-45 for 10 kg. However, even at the current rate, buying support remain slack. By and large majority of trading in soy refined was witnessed at Rs 642-43 for 10 kg. Soy solvent also traded low with its price in the spot and delivery being quoted at Rs 610-14 for 10 kg (Rs 615-20). With decline in demand at the higher rate, resellers made profit booking in soy oil at Rs 637-38 for 10 kg.

Soy oil futures also traded low on decline in dollar rate and weak buying support in the physical market. On the NBOT, soy refined January contract though opened higher at Rs 681 (Rs 680.10), in the evening it closed Rs 1.50 lower at Rs 678.50 for 10 kg. Similarly on the NCEDX, soy oil futures traded lower on slack demand with its January contract closing Rs 2.70 lower at Rs 679.30 for 10 kg, while its February contract closed Rs 4.30 lower at Rs 680.60 for 10 kg.

With gradual increase in soybean arrival with about 2 lakh bags of soybean being offloaded in Madhya Pradesh, soy seeds in state mandis on Thursday declined to Rs 2280-Rs 2340 a quintal (Rs 2280-Rs 2360). Arrival of soybean in Indore mandis was recorded at 7500, Ujjain mandi - 8000 bags and Dewas mandis - 11000 bags. Plant deliveries in soybean also declined on weak demand at Rs 2370-Rs 2405 a quintal (Rs 2370-Rs 2425). Weak buying support also dragged soybean prices in the futures with soybean January and February contracts on the NCEDX closing at Rs 2395 a quintal (down Rs 21) and Rs 2415 a quintal (down Rs 29.50).

Soy DOC ruled steady on slack export demand with its prices on the court remained stable at Rs 17,900 a quintal.

Published on December 22, 2011
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