Edible oil prices up on global cues
Edible oil prices continued to move up in the local markets on the back of global rally and lower-than-expected stocks.
By ET Bureau |
MUMBAI: Edible oil prices continued to move up in the local markets on the back of global rally and lower-than-expected stocks. The ex-factory prices of major edible oils ��� soyabean, palm and mustard ��� have gone up by Rs 1.5 to Rs 5 per kg in the past fortnight.
The price of soyabean oil is up by Rs 2 per kg to Rs 66, while palm oil is up by Rs 1.5 to Rs 58 and mustard oil edged up by Rs 6 to Rs 70 per kg.
In domestic markets, there is a shortage of oilseeds and India imports a major portion of its requirements of edible oil. According to B V Mehta of the Solvent Extractor���s Association, the market is likely to remain firm as import is expected to slow down to 3.5 to 4 lakh tonne per month as against 5 lakh tonne previously. ���Imports will be less due to enforcement of stock limits that will reduce the supply,��� he said.
Also, there is good demand for soyabean seed due to kharif sowing and indications are that there will be an increase in the soyabean acreage. ���Though 70-75% crushing is over between November and April but for the remaining period there is demand for seed and additional demand for sowing,��� Mr Mehta added.
The global rally in soybean prices has been triggered by concerns of bad weather conditions in US Midwest that could affect acreage. A strike in Argentina which is the third largest supplier has also sparked supply concerns.
Global tightness is expected to continue and according to Oil World report the global stocks of 10 oilseed are set to plunge in 2007-08. Soyabean August contract on Chicago Board of Trade closed up 18.8 cents at $15.38 per bushel on Thursday. Following the CBoT prices even the crude palm oil price on Malaysian exchange closed 67 points up at 3,990 ringgit per tonne on Friday.
In NCDEX platform, soyabean July contract closed higher 1.3% at Rs 2,533 per quintal, while rape mustard seed closed up 1.5% at Rs 650 per 20 kg on Friday.
Research analyst Badruddin from Angel Commodities said that the July contract should touch Rs 2,560 and rape mustard seed should find support at Rs 655.
The price of soyabean oil is up by Rs 2 per kg to Rs 66, while palm oil is up by Rs 1.5 to Rs 58 and mustard oil edged up by Rs 6 to Rs 70 per kg.
In domestic markets, there is a shortage of oilseeds and India imports a major portion of its requirements of edible oil. According to B V Mehta of the Solvent Extractor���s Association, the market is likely to remain firm as import is expected to slow down to 3.5 to 4 lakh tonne per month as against 5 lakh tonne previously. ���Imports will be less due to enforcement of stock limits that will reduce the supply,��� he said.
Also, there is good demand for soyabean seed due to kharif sowing and indications are that there will be an increase in the soyabean acreage. ���Though 70-75% crushing is over between November and April but for the remaining period there is demand for seed and additional demand for sowing,��� Mr Mehta added.
The global rally in soybean prices has been triggered by concerns of bad weather conditions in US Midwest that could affect acreage. A strike in Argentina which is the third largest supplier has also sparked supply concerns.
Global tightness is expected to continue and according to Oil World report the global stocks of 10 oilseed are set to plunge in 2007-08. Soyabean August contract on Chicago Board of Trade closed up 18.8 cents at $15.38 per bushel on Thursday. Following the CBoT prices even the crude palm oil price on Malaysian exchange closed 67 points up at 3,990 ringgit per tonne on Friday.
ADVERTISEMENT
In NCDEX platform, soyabean July contract closed higher 1.3% at Rs 2,533 per quintal, while rape mustard seed closed up 1.5% at Rs 650 per 20 kg on Friday.
Research analyst Badruddin from Angel Commodities said that the July contract should touch Rs 2,560 and rape mustard seed should find support at Rs 655.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
