07.05.2020 (Cogencis) - NEW DELHI – Futures contracts of all components of the domestic edible oil basket rose today on domestic exchanges.
Soybean and refined soyoil futures on the National Commodity and Derivative Exchange rose due to buying at lower prices, after a recent fall, said analysts.
However, outlook for both the commodities on the NCDEX is seen bearish due to weak demand from institutional buyers in the country amid the coronavirus pandemic, they said.
India's edible oil imports fell around 34% on year to 790,377 tn in April, The Solvent Extractors' Association of India said.
"Restricted movement to combat spread of coronavirus and complete shutdown of HORECA (hotel, restaurants and catering) business dragged downed our edible oil consumption drastically in last couple of months," said Mohit Vyas of Kotak Securities.
For the next five to six sessions, the most active June delivery soybean contract on the NCDEX is seen at 3,630-3,900 rupees per 100 kg, said Anup Sahu of Kotak Securities.
Futures contracts of mustard on NCDEX rose today as some state governments started purchasing the oilseed at minimum support price from some key growing regions, said Vyas.
The near-term outlook is positive due to the procurement drive, which may lead to lower supplies in the physical markets as farmers would prefer selling to government at the secured rate, Vyas said.
Jaipur, the benchmark market, was closed today as traders' association on Wednesday decided to shut all trade across the state for five days to oppose the Rajasthan government's decision to impose 2% family welfare fee on trade of farm produce.
Futures contracts of crude palm oil on Multi Commodity Exchange of India rose today due to value buying after a recent slump in prices, said analysts.
However, weak sentiment for benchmark crude palm oil contracts on Bursa Malaysia Derivatives due to weak demand from domestic biofuel manufacturers and from major overseas buyers is seen weighing contracts on the MCX in the coming sessions, they said.
The following table details prices of edible oils and oilseeds at 1648 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 Aditya Sakorkar