05.05.2020 (Cogencis) - NEW DELHI – Futures contracts of all components of the edible oil basket, except soybean, fell on the domestic exchanges today.
Paring losses from the previous session, the May contract of soybean on the National Commodity and Derivatives Exchange settled 0.2% higher due to improved demand at the lower price level, analysts said.
Weakness in key soybean futures on the Chicago Board of Trade clipped a sharp rise in contracts on the domestic exchange, the analysts said.
Soybean futures fell on the Chicago bourse due to renewed trade tensions between the US and China, a Mumbai-based analyst said. US is the largest producer of soybean, and China the largest importer of the oilseed.
The May contract of refined soyoil on the NCDEX fell 1.8%, and the same-month crude palm oil futures on the Multi Commodity Exchange of India plunged 2.2%. The contracts were weighed down by eroding demand in domestic markets on account of the lockdown due to COVID-19, dealers said.
Weakness in contracts on the Bursa Malaysia Derivatives further depressed the prices of crude palm oil on the MCX.
Futures contracts of crude palm oil on the BMD settled lower today due to subdued demand from the biofuel sector and lower shipments to foreign buyers during the pandemic, said analysts.
Relative recovery in global prices of crude oil limited the downside in prices of crude palm oil on the BMD. Palm oil is used for producing biofuel.
Mustard futures on the NCDEX ended over 1% lower due to higher supply in domestic markets, analysts said.
In Jaipur, the benchmark market, mustard was sold at 4,365-4,370 rupees per 100 kg, down 35 rupees from Monday, traders said.
The following table details prices of edible oils and oilseeds at 1734 IST, in rupees, and the difference compared with the previous session:
Refined soyoil May
Crude palm oil May
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Charumathi Sankaran